Sunday, November 29, 2009

User post: Are we talking ourselves into a deeper recession

Okay. I know we are actually in a recession and there are real problems in the economy. People are getting laid off (including 2 members of my family). But in writing my career column this week I noticed that all the bad economic news gets front page headlines and all the good news is buried on page 42 and reported as an aberration.

In the same week that very real layoffs at major companies dominated the news, here is the news you probably didn't see:

  • The National Association of Realtors reported that December home sales posted the largest monthly gain in seven years. While one month does not signal a turnaround in the housing market, the sales of more homes, even at lower prices, will lead to work for mortgage brokers processing loans, contractors doing home improvements and retailers selling appliances, carpets, furniture and home furnishings, among others.
  • Mutual funds reported that for the first time in many months more money was invested in funds than were withdrawn and not by a little amount. Nine (9) billion dollars more was invested than was withdrawn.
  • No jobs available. Not exactly. Although there are many more people seeking work than there are available jobs at the moment, there are jobs out there. According to the most recent available statistics from the U.S. Department of Labor, there are 2.8 million job openings employers are seeking to fill.
  • The IRS just announced it is seeking to hire hundreds of new tax collectors and auditors. And the US Customs agencies is actively holding job fairs in 15 cities to hire 11,000 new employees. If you happened to be at Kennedy airport yesterday you could have attended one.

By focusing only on the bad economic news, we run the risk of making the recession longer and deeper. People who have jobs will spend less, businesses will invest less and will layoff more employees and the government will use the bad news to justify spending that is neither stimulus nor the right prescription for what is really going on in the economy.

While we need a realistic approach to dealing with the actual problems in the economy, we also need to focus on the very real positive signs in the economy. I don't know why are politicians and reporters keep referring to this as the worst economy since the Great Depression. I am old enough to remember that in the late 70s we had double digit unemployment and double digit inflation. Interest rates on home mortgages was upward of 15%. The job market was a lot worse than it is now. We got through that and it was followed by the longest period of continuous economic growth since they began keeping records.

So perhaps a little more balanced reporting, a little cheerleading from our politicians (who have an incentive to make things look worse so they can avoid blame if the policies they elect to implement don't work) and a little more optimism might help us move quickly out of this recession and unleash the potential for us to prosper and grow our economy.
Syndication:

From the Community…

Comments 1-10 of 36
  • Sunshine's Avatar
    Posted by Sunshine Sun Feb 1, 2009 6:31pm PST

    I agree with you. I believe it is real but somewhat self imposed by the the media. I am in the financial industry and we are actually hiring people. The news is bad for a lot of people but there are jobs out there, I see them everyday. It may require moving to another area that is hiring or changing industries.

    I just had dinner with a friend in the mortgage industry and they are swamped right now with refinances because the fed's have dropped interest rates so much.

    I do think this is good time to take a look around in our lives and save more, less credit card debt and realize we are going to take care of ourselves more instead of thinking we are going to have a safety net with the governement or any of these idiots on Wallstreet. These guys will not get anymore of my money.

    Report Abuse
  • superkate's Avatar
    Posted by superkate Mon Feb 2, 2009 12:50pm PST

    Thank you for writing this. I have been feeling like this for awhile. If people could just see that going on with your life and not cutting everything out/off you are helping our economy.

    Report Abuse
  • Terry Hernon MacDonald's Avatar
    Posted by Terry Hernon MacDonald Mon Feb 2, 2009 12:57pm PST

    I agree with you completely. Even people with secure jobs are afraid of spending money due to dire headlines. A lot of us are definitely talking ourselves deeper into recession.

    Thanks for writing this much-needed and sensible piece.

    Terry

    http://www.singlewomenrule.com

    Report Abuse
  • Sdub's Avatar
    Posted by Sdub Mon Feb 2, 2009 1:27pm PST

    So nice to hear someone else say this. I think I'm starting to sound like a broken record...I've been saying this for a while now to a lot of people around me who are the doom and gloom type.

    Report Abuse
  • Michael's Avatar
    Posted by Michael Mon Feb 2, 2009 5:39pm PST

    How about a tax incentive that gives the American people a 10% write off on every dollar spent. The government would get their money back tenfold. This would create jobs instantly.

    Report Abuse
  • MariaB's Avatar
    Posted by MariaB Mon Feb 2, 2009 9:45pm PST

    I've been feeling like we are talking ourselves into a worse situation. Yes, times are difficult, but I have noticed that even people with money don't spend it at retailers ( I own a retail store in an affluent area) and I think that it is because the talking heads in TV and radio bring us only doom and gloom news. Perhaps congress should send each family some coupons just for spending and jolt the masses into forced purchasing. Everyone would then get happier!

    Report Abuse
  • Shan's Avatar
    Posted by Shan Tue Feb 3, 2009 5:13am PST

    Let us talk or coordinate or communicate .

    Report Abuse
  • WilliamM's Avatar
    Posted by WilliamM Tue Feb 3, 2009 6:02am PST

    Yes. There was a month or two of almost constant media references to "the recession" and "the bad economic situation" before there really were any serious signs of a downturn ( such as the beginning of the big layoff announcements ).

    Consumer confidence plays a large part in the health of a modern economy, and a steady diet of doom and gloom on the evening news is not exactly the best tonic for consumer confidence.

    The recession is real, the banking crisis is real, but the media, with its "if it bleeds it leads" philosophy, has also done its level best to create a self-fulfilling prophecy.

    Report Abuse
  • Bree's Avatar
    Posted by Bree Tue Feb 3, 2009 6:24am PST

    i agree with you 100%.

    Report Abuse
  • Am I there yet?'s Avatar
    Posted by Am I there yet? Tue Feb 3, 2009 9:34am PST

    Nothing fuels a recession like mass panic. Every time the news does a story on how horrible the economy is (even when nothing new is going on), the stock market takes a dump and things end up getting a little worse. I wish the news would start talking about a big economic turnaround and what new developments are going on....maybe that'd brighten things up a bit and finally do some GOOD.

    Report Abuse
Comments 1-10 of 36

leave your comment

You must sign in to post a comment

Sign In for personalized information

New User? Sign Up

Updates Chatter on Shine…

Health Byte

Who doesn't want to look hot at all those holiday parties? ExerciseTV shares how to get in skinny jeans-shape -- and quickly!