Jun 13 2008

Down On The Economy? Cheer Up, It’s Not All Bad.

Published by Roland Manarin at 2:41 pm under Economy

The Democratic National Committee recently ran an ad blasting John McCain for saying the country is “better off” than in 2000.  Yet, arguably, except as regards the Iraq war, Mr. McCain’s statement is true.  In turn, Mr. McCain is blasting Barack Obama for suggesting that international tensions are not as bad as they’ve been made to seem.  Yet, arguably, Mr. Obama is right.

Democratic attacks on Mr. McCain and Republican attacks on Mr. Obama both seek to punish impermissibly positive thoughts.  At a time when there exists a sense of crises over the economy, fuel prices and many other issues, this reinforces the odd, two realities of life in the United States today: The way we are, and the way we think we are.  The way we are could use some work, but overall, is pretty good.  The way we think we are is terrible, horrible, awful.  Possibly worse.

The case that things are basically pretty good?  Unemployment is 5.5%, low by historical standards; income is rising slightly ahead of inflation; housing prices are down, but the typical house is still worth a third more than in 2000; 94% of Americans do not have threatened mortgages, and of those who do, most will keep their homes. 

Inflation was up in 2007, but this stands out because the 16 previous years were close to inflation-free; living standards are the highest they have ever been, including living standards for the middle class and for the poor. 

All forms of pollution other than greenhouse gases are in decline; cancer, heart disease and stroke incidence are declining; crime is in a long-term cycle of significant decline; education levels are at all-time highs.

Sure, gas prices are up, the dollar is weak and credit is tight - but these are complaints at the margin of a mainly healthy society.

From Gregg Easterbrook’s Friday editorial in the Wall Street Journal

 

Share/Save/Bookmark

Related posts:

  1. Economic Ignorance & Our Presidential CandidatesKarl Rove had some interesting remarks in last Thursday's WSJ about...

Trackback URI | Comments RSS

Leave a Reply

DISCLAIMER: Information and analysis in Manarin Investment Counsel, Ltd. communications is compiled from sources believed to be reliable but its accuracy or profitability cannot be guaranteed. All Manarin Investment Counsel, Ltd. communications are intended solely for informational and educational purposes and are not to be deemed a prospectus or solicitation of orders, nor does it purport to provide legal, tax or individual investment or business advice. Readers should consult with expert legal, tax, business and financial counsel before taking any action. Advisory services offered through Manarin Investment Counsel, Ltd., an SEC Registered Investment Advisory Firm.