Defining Economic Failure Down: We’re coming to accept a weaker economy as the new normal.

National Review ^ | 02/05/2015 | George Will

[SeekAndFind]

Two phrases that Daniel Patrick Moynihan put into America’s political lexicon two decades ago are increasingly pertinent. They explain the insufficient dismay about recent economic numbers.

Moynihan said that when deviant behaviors — e.g., violent crime, or births to unmarried women — reach a certain level, society soothes itself by “defining deviancy down.” It de-stigmatizes the behaviors by declaring them normal. And sometimes, Moynihan said, social problems are the result of “iatrogenic government.” In medicine, an iatrogenic ailment is inadvertently induced by a physician or medicine; in social policy, iatrogenic problems are caused by government.

When the economy grew by just 2.6 percent in 2014’s fourth quarter, the New York Times headline cheerfully said “Economy Pulls Ahead.” The story said the U.S. economy is “an island of relative strength” in a world facing “renewed torpor and turmoil.” This was defining failure down.

The Wall Street Journal said “U.S. Economy Hits Speed Bumps,” as though speedy growth had been normal for a while. The speeding had consisted of one quarter (2014’s third) of 5 percent growth. But the economy had gone 43 consecutive quarters without 5 percent growth, the longest such period since the government began keeping the pertinent records in 1947. And even with this third quarter, growth for 2014 was just 2.4 percent, making this the ninth consecutive year under 3 percent. During the recovery from the recession of 1981–82, there were five quarters of 7 percent–or-higher growth, and five years averaged 4.6 percent growth.

There also was unmerited triumphalism about November’s job growth of 353,000. This was just the fifth month of 300,000-plus growth in the 68 months since the sluggish recovery began in June 2009. In the 1960s, there were nine months of 300,000-plus job creation

[EagleUSA]

There is no NEW economy -— only a ruined economy, as per the DemocRat agenda. When we again have a pro-American President in the White Hut, it will be part of his agenda to restore a vibrant economy and support capitalism.

[cuban leaf]

Here’s why doomsayers are never really “right”:

Back in around 2007 I was arguing on Seattlebubble.com that housing prices could fall as much as 20%. I was vilified as a nut case. And, truth be told, it even sounded “over the top” to me. That reflects the mindset we were in.

But Seattle real estate values collapsed. As much as 50% (or more) in many areas. but nobody said, “hey, you were right!” or “This is a catastrophy. The Doomsayers were right.”

Nope.

What happened was we adapted to a new normal. It caused me to coin a new phrase:

Human beings are more adaptable than cockroaches.

[Pollster1]

If we want to be a socialist welfare state, then of course economic weakness will be the new normal.

[BenLurkin]

[PGR88]

A fiat currency, backed by nothing, gives politicians and the Federal Reserve license to do anything they want.

[MrB]

I have this hope that in the next decade I can recover the 25% of my income that I lost due to Obama,
and perhaps see the regulations rolled back that prevent building wealth through real estate investment.