Economic Good News
I have always thought that the most important event in turning around an economic slowdown is the first good news reported coinciding with a growing number of people deciding they’ve had enough of recession.
In preparing for writing this Blog, I have been reading constantly about the current GDP decline,unemployment numbers, stimulus strategy, individual tax cuts, investment tax credits and the history of the depression. This subject can only be concentrated upon for a limited amount of time before Prozac will be needed to get through the day.
The news and actions of congress can add to a depression spiral. Senators, Arlen Spector, Susan Collins and Olympia Snowe reminded me of Neville Chamberlain. They did everything but wave a document in the air and declare that they had won peace in our time as they caved in appeasement during the negotiations to supposedly to create a Stimulus Bill that actually might be a stimulus.
I’ve decided that this is not bad news, it is sort of “expected news”. So where can you find a glimmer of good news upon which to start your personal exit from a recession?
Here are some things to think about. Our current recession has been described as a wicked one not experienced at this level since 1974. The reports of a GDP decline of between 3 & 4% was described as the greatest decline in 34 years. The good news is that this decline was only about half of the decline in 1974 which was 6.8%. This was not reported in the comparison being made.
Unemployment rose to 7.6% and that is bad news if you are unemployed but unemployment created during the Carter economic debacle left Reagan at the start of his Presidency in 1981 with unemployment at 10.5%. I haven’t seen that reported when comparing this recession to others.
Some good news is that Wal-Mart sales are up which shows that people are acting on their own Stimulus Plan by buying frugally.
Several major auto dealers in Denver have reported that their sales volume has skyrocketed in January with late model used cars leading the way. People are buying what they perceive as a good deal.
My youngest son’s pizza operation is about 40% up in volume of sales this year while more expensive restaurant operations are having trouble.
Apple had the biggest most profitable quarter in their history.
The decline in home prices is good news if you are in the market and have decent credit since mortgage rates are extremely low.
My experience with a car loan indicates that they are available at a decent rate. It took me about 10 minutes recently to complete the deal on my car.
I figure that the turn around should start here. I’m worn out from all the negativity that has surrounded us and that our President doesn’t seem to understand that the campaign is over and that he won, as did his party. It’s time to lighten up a bit and move beyond political carping as a full time governing strategy.
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