Topic: Economic Policy
The Perception of Recession Are Happy Days really here again?by Raven West, J.D.
(libertarian)
Sunday, August 9, 2009
If we are to believe the recent news reports, it seems like happy days are here again. According to the U.S. Labor department, the unemployment rate fell in July for the first time in 15 months as employers cut far fewer jobs than expected.
Great news, right? Except for the people whose jobs were actually cut. Could it be possible that the reason why employers cut far fewer jobs was because they had far fewer jobs to cut? If this is the way we interpret and report economic recovery, the media is delusional.
If you lost five thousand dollars last month , and this month you only lost two thousand dollars, you can say that you lost less this month than last month, but that doesn't mean you've recovered from the previous month's loss.
It begs the question, just how much faith can you really have in statistics and reports of economic recovery if you're the one who lost their job, or has not been able to find one? Not much. Especially when those who are happy to report this positive news are, well, employed.
Are "Happy Days" really here again, or is it only the perception of a recovery gives everyone false hope while the reality is being ignored. If no one reports desperation, then obviously there is no desperation.
Food stamp applicants continue to flood social service agencies. The long lines of employed executives are still forming at job fairs just as they were months ago and struggling families are still facing foreclosures at record rates, but the television cameras and reporters have long since abandoned them. After all, less people were laid off this month, the stock market is up and we're all happy again.
Tell that to the college graduate who can't even find a job waiting tables. Tell that to the cities who had to cancel their July 4th celebration. Tell that to the thousands of Californians who are receiving I.O.U.s instead of paychecks. But, hey the Cash for Clunkers program is working, so we must be on the road to economic recovery. At least until all those new car buyers lose their jobs then fail to make a car payment and their hybrid is repossessed.
Cautious optimism is much better than any hint of pessimism. Perceiving the glass as half full is better than the actual reality of an empty glass. The media, unfortunately, shapes the message, and it is the distortion of the message that's the real problem.
It's one thing to report on those who are on the road to recover but please do not forget those who are still stuck in the ditch.
If we are to believe the recent news reports, it seems like happy days are here again. According to the U.S. Labor department, the unemployment rate fell in July for the first time in 15 months as employers cut far fewer jobs than expected.
Great news, right? Except for the people whose jobs were actually cut. Could it be possible that the reason why employers cut far fewer jobs was because they had far fewer jobs to cut? If this is the way we interpret and report economic recovery, the media is delusional.
If you lost five thousand dollars last month , and this month you only lost two thousand dollars, you can say that you lost less this month than last month, but that doesn't mean you've recovered from the previous month's loss.
It begs the question, just how much faith can you really have in statistics and reports of economic recovery if you're the one who lost their job, or has not been able to find one? Not much. Especially when those who are happy to report this positive news are, well, employed.
Are Happy Days really here again, or is it only the perception of a recovery gives everyone false hope while the reality is being ignored? If no one reports desperation, then obviously there is no desperation. Right.
Food stamp applicants continue to flood social service agencies. The long lines of employed executives are still forming at job fairs just as they were months ago and struggling families are still facing foreclosures at record rates, but the television cameras and reporters have long since abandoned them. After all, less people were laid off this month, the stock market is way up from a year ago and we're all happy again.
Tell that to the college graduate who can't even find a job waiting tables. Tell that to the cities who had to cancel their July 4th celebration. Tell that to the thousands of Californians who are receiving I.O.U.s instead of paychecks. But, hey the Cash for Clunkers program is working, so we must be on the road to economic recovery. At least until all those new car buyers lose their jobs then fail to make a car payment and their hybrid is repossessed.
Cautious optimism is much better than any hint of pessimism. Perceiving the glass as half full is better than the actual reality of an empty glass. The media, unfortunately, shapes the message, and it is the distortion of the message that's the real problem.
It's one thing to report on those who are on the road to recover but please do not forget those who are still stuck in the ditch.
Did you like this article? If you did, Thumb It! 9 thumbs so far
The views expressed in this
article are those of Raven West, J.D. only and do not represent
the views of Nolan Chart, LLC or its affiliates. Raven West, J.D. is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
It's because these "rosy reports" are not for the unemployed, or those on foodstamps or are being foreclosed on. These catergories of people are in the minority, and they are not the ones that could stimulate an ecomomic recovery.
These "reports" are for those still working, still paying mortgages, yet fear the economic environment that they have been hearing about for nearly 2 years.
These "reports" are meant to keep us pacified until their strategies either work, or the country pulls out of it\'s economic cycle on it\'s own, despite their strategies.
What they do not need is the majority of us reducing spending and fearing the future, for that behavior will contract the economy at a rapid rate. Consumer spending is too large a part of the economy, and they cannot afford the impact fear may have on it.
They are meant to have our money flow into the stock market, rather than possibly miss the big recovery.
Hourly wages rose three cents an hour. Who was that message geared for? Workers who fear cutbacks. Not once did I hear the impact of a minimum wage increase on that number, which took place in July. We had to say something to pick up the spirits of those working.
It\'s a confidence game. Sometimes it works, sometimes it does not.
Keep digging into the numbers....they cannot completely hide the truth.
Want to comment on this
article? Leave your comment here. Your email address is
required to track your comment. However, we will neither
publish your email address nor distribute it to other
organizations or persons. The only reason we might use
it would be if we needed to contact you regarding your
comment. All comments are subject to our
terms of use policy.
