Despite Gloom, More Bush Boom

Atlanta Journal Constitution ^ | November 1, 2007 | Michael McCullough

[DallasMike]

I was chatting with a neighbor a couple of weeks ago, and he mentioned how America was suffering from a bad economy. I expressed amazement, threw out a figures, and asked him exactly what bad economy he was talking about. He travels often and said that the economy was better in Texas than up north, but he fully believed that the US was suffering from an economic slowdown. He's no liberal either, but evidently has heard enough bad reporting lately to believe the phony news. I read a story last week stating that approximately half the country thought that we were in a recession.

Where do people get these crazy ideas. Well, the Democrat Party and the mainstream media for one. From the Atlanta Journal Constitution:

But millions of Americans, unnerved by the mortgage mess and rising energy prices, fear that any rate cut now will be too little, too late. They think the economy already is in a recession, or sliding towards the inevitable.

In a Bloomberg/Los Angeles Times survey conducted Oct. 19-22, two-thirds of the respondents said a recession is "likely" next year. A recent poll by CNN and Opinion Research Corp. found that nearly half of Americans believe the country already is in a recession.

Perception can become reality

These perceptions represent a real risk. Consumer spending is the biggest driver of U.S. economic activity, and if fearful Americans decide to save their money instead of spend it, growth could slow drastically.

If a Clinton was president, the newspapers would have headline stories every day trumpeting the great economy. But this is the Bush administration and he simply is not allowed to have good headlines. That could jeapordize the chances of the Democrats winning in 2008.

Here's a more realistic view of the economy written by Investors Business Daily:

If things are so bad, why are they so good?

With all the gloom coming out of Wall Street, the Democrats on the campaign trail and the mainstream media, a remarkable thing just happened: Real gross domestic product, the best summary report of the American economy, came in at a breathtaking 3.9% annual rate for the third quarter.

In fact, following the 3.8% growth rate for the second quarter, the U.S. economy has posted its strongest quarterly growth in four years. The economy actually appears to be speeding up, following the relatively sluggish performance of the prior 18 months.

On top of this, the inflation rate is actually slowing down. The consumer spending deflator is reading 2.1% for the past year, compared with over 3% six quarters ago. The core inflation rate is down to 1.9%, below the Fed's 2% target.

Even employment is holding its own. According to Automatic Data Processing's private employment survey, which showed its strongest gain in four months, October looks like it will produce about 125,000 new jobs.

Meanwhile, rising exports of American goods and services are booming to such an extent that the deep housing recession is being canceled out.

Remember in 2000 when the stock markets crashed and the economy tanked? The Democrats and the mainstream media were chastizing Bush for "talking down the economy" while hiding the real news from the American people. They're at it again, except this time it's the Democrats and the mainstream media "talking down the economy."

[DallasMike]

[ladtx]

I know the stock market is only one measure of the economy but since the 1st of September my 401’s and IRA’s are up 11% even after yesterdays hit. True, that number includes contributions, but I haven’t had to cut my contributions because of a “bad” economy either. I’m just a plain ol’ Joe Blow working toward retirement. I don’t have a huge inheritance to count on or expect a handout from Uncle Sam but sometimes I think the perceptions are driven by idealogy rather than financial markers. Many libs and dems just “feel” that the economy is bad because the paid a little more for gas this week as compared to last week. They need to get a grip and look at their lives overall.