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February 11, 2008
Economic Pity Party Continues
Now that Mitt Romney has gracefully ended Act One of the drama in the
Republican presidential primary by suspending his campaign, and since
the only real drama in the Democratic presidential race is whether it
will be the first female nominee or the first African-American nominee,
some of the media elites have already returned to their next favorite
theme of “A Recession is Coming.”
January 21, 2008 column describing this media frenzy as a rerun of the
movie, “The Economy”, was short-sighted, because the mainstream media
editors and writers are putting out enough material for a long-running
TV series. Some of the latest episodes:
“Economic outlook turns
bleaker. U.S. Employers cut jobs for first time in 4 years.
(Jeannine Aversa, AP 2-02-08). “Conditions are
deteriorating, according to the latest employment snapshot by the Labor
Department, which showed nervous employers slicing payrolls by 17,000.
The country hadn’t seen such a nationwide job loss since 2003.”
is not revealed in the article until the very end that state and local
government accounted for a loss of 18,000 jobs, while the private sector
actually added 1,000 jobs. Lesson learned, keep reading. Additionally,
the job numbers will be revised as more data are collected, and for the
last four years they have always been revised favorably. But there is no
drama in favorable revisions to employment reports.
“Recession fears grip
market. Alarming data from service sector send Dow industrials down 370
Read, AP 2-06-08).
That alarming 370 points was 13 percent lower than the all-time high
last October of 14,164 points, but still nearly 5 percent higher than
the 52-week low of 11,634. Observation: It’s called normal volatility.
Sinks Even Lower amid heightened fears about shrinking job opportunities
and the possibility the country is falling into a recession.”
(Jeannine Aversa, AP 2-08-08).
Surprise, surprise, surprise! This continuing recession theme is having
its desired effect of putting Paul and Pamela Pitiful into an economic
Thankfully, I found one article that presented the facts minus the
hyperbole. Economist Brian Wesbury concluded:
“The Economy is Fine
(Really). Rampant pessimism with so little evidence of serious trouble.”
(Wall Street Journal, 1-28-08.)
Brian Wesbury is chief economist at First Trust Advisors, a
Chicago-based investment bank. He is not a media reporter, and his
conclusion does not fit the story line for “A Recession is Coming”.
Thus, you will not find his articles on the front pages of the business
sections of most newspapers.
is worth repeating. We are in an economic correction of our national
economy, not a recession. Negative economic hyperbole causes employers
and investors to become hesitant, which could unnecessarily stimulate a
further slowdown in the economy.
Some local economies are experiencing negative growth or none at all,
but that cannot be blamed on short-term consequences of national
economic policies. Similarly, some people are experiencing personal
recessions with their finances, but the state of the national economy is
the least of the mitigating reasons.
will uncharacteristically make a prediction: Liberal members of the
mainstream media and the Democratic presidential candidates will
continue to fan the flames of economic doom and gloom all the way to the
November elections. Why? Because it’s the next best surrogate for Bush
bashing, since undeniable progress in Iraq does not offer much media
Hillary Clinton or Barack Obama win the White House, then the new
storyline will be how long (four years of course) it will take them to
clean up the economic mess created by President Bush.
John McCain wins, the series will continue until they talk the public
into a recession. The economic pity party . . . to be continued
Herman Cain is a radio
talk show host on WSB 750 AM in Atlanta, airing weeknights from 7-10
p.m. He is also a syndicated columnist with North Star Writers Group.
© 2008 North Star
Writers Group. May not be republished without permission.
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