Well, Thomas, who happens to be my favorite, albeit only, reader, has recently re-emerged and called me out for not having posted Part II of the much-hyped and much-anticipated “Pulling the Wool” series (for which I will be nominated for an Emmy this season). To be honest, I have a lot of things going on in life, what with a new business and a baby on the way, which have pushed writing about the economy to the bottom of the totem pole. I will, however, try and untangle some of the issues that I see going on with the economy right now.
First of all, we are not in a recession. Wait a minute, let me put my caps lock on and say it again, this time with quotes, “WE ARE NOT IN A RECESSION.” According to the Bureau of Economic Analysis (here), we have not technically met the definition of “recession.” We have experienced positive economic growth in the first (.9) and second (2.8) quarters of FY2008 – the only quarters for which data are available. The news media will not tell Americans that we are not in a recession and anyone who denies that we are in a recession (much like those who deny global warming) is labeled by the media and his or her peers as ignorant.
Americans, this year, have been “taught” by the media – like never before – that our economy is in shambles and that we are in a recession. We are a gullible people and the prophecy may ultimately fulfill itself, to the joy of many who stand to gain power or riches. I think that we have been told so long that we are in a recession that a recession just may occur. Any economic difficulties facing our nation right now, in my personal opinion, have been created by a liberal-leaning media that is trying to affect the sentiments of the people for political gain and by speculators who are gambling with our economy for their own benefit.
The fundamentals of our economy, however, are strong, and free markets are the best thing that we have going for us…bailouts and the nationalization of certain sectors of our economy are not the answers; but, the media and the politicians won’t tell you that because it is not in their interests and conflicts with their agendas. The media, in general, is “teaching” America that more Government, more regulation, and more oversight is the answer. Now, to be sure, certain things do need oversight in order to ensure that outright thievery and fraud are not being committed; however, the media and the politicians are extrapolating well beyond a general set of economic guidelines and are trying to set up a socialist framework.
The markets can correct the economic difficulties that have been experienced as a result of the naysaying nabobs in the media, but it is definitely going to take a lot of work to overcome the bias that has been “taught” to us by the media and which stands against all reason. Rest assured that capital will flow and our economy will still function without a bailout; lenders will exist and loans will be made. Why? Because people seek a profit and they will invest in sound ideas. The machine will work as it has, despite the fact that the media and the politicians are pouring sugar in its gas tank.