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Uninformed Public Disregards Economic Reality

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The liberals, Democrats, and Obamic advocating MSM’s want people to believe the economy in such a bad state, it makes the Great Depression look like a $30 overdraft notice in your mailbox.

Consumer confidence is at its lowest level in almost 30 years. Only 12 percent of Americans think the economy is in good shape. On the Internet, comparisons to the Great Depression are widespread.

But the reality is different. According to most broad measures of how the economy is doing, it’s not all that grim.

Soft? You betcha. In recession? Quite possibly. And a crisis in the financial markets has rattled nerves for months now. But so far, the economy is holding up better than it did during the last two recessions in 1990 and 2001. Employers haven’t shed as many jobs, the unemployment rate is still relatively low, and gross domestic product has kept rising. Things are nowhere near as bad as they were in the Great Depression, or even during the severe recession of 1982-83. The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

This paradox has created a unique challenge for those guiding the economy, who worry that Americans’ pessimistic views will become a self-fulfilling prophecy. Two-thirds of the economy is consumer spending. So if people’s negative outlook leads them to cut their spending, a steeper downturn could happen.

This has left economists trying to figure out why Americans’ perceptions are so much more negative than the data analysts use to measure how things are going.

“We’re saying that we feel a lot worse than we did at the depths of the last recession, when we had had 2 or 3 million job losses, that we feel worse than we did after

9/11,” said William Cheney, chief economist of John Hancock Financial Services. “At some level, that just doesn’t make a whole lot of sense.”

Hearing the chatter of well-off individuals who coincidentally vote Democrat tickets, why does the public feel this way? They are uninformed, they don’t look at the facts, and they take away personal responsibility for one’s own finances from the individual.

The biggest reason for people’s gloom might be because of what they’re used to. In the 1980s and ’90s, memories of the double-digit unemployment and double-digit inflation from the 1970s were still fresh.

“People expected very little out of the economy,” said Richard Curtin, who has administered the University of Michigan’s survey of consumer sentiment for 35 years. “Compared to what their frame of reference was, the performance of the economy was absolutely tremendous.”

But now, coming off two decades of prosperity and low inflation, Americans have come to treat low unemployment and inflation as givens. We have gotten so used to things being good, in other words, that even when conditions become somewhat bad, it feels terrible.

Spoiled and lazy Americans. That’s what the Democrat-majority Nanny Government wants to turn the United States into: a socialist country where the government takes from the evil wealthy middle class and hands it to illegal immigrants and the liberal-loving impoverished. Democrats are fact-impoverished and solutionless to the major issues. The supposedly new changes that Obama brings didn’t work for FDR, didn’t work for Johnson, and abyssmally made Carter’s presidency a failure. We don’t need that kind of change.


Written by smalltalkwitht

June 18, 2008 at 4:40 pm

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