The Anchoress
I love to read freelance writer Meg Kreikemeier because she is an educated, professional woman who, while choosing to stay raise her kids, still manages to write excellent pieces like this
So where were the glowing headlines about the economy?
A perusal the New York Times and the Chicago Tribune in late November and through mid-December revealed that almost all of these positive economic trends were found not in the headlines but on pages two or later in the business section.
The New York Times published one front page article, “Upbeat Signs Hold Cautions For the Future,” where the writer hedged the recent results. After noting that gasoline prices had dropped, consumer confidence had increased, new home sales had hit a record, the stock market had finally risen, after remaining relatively flat for years, and factories were expecting a “happy holiday season,” the New York Times wrote:
“By most measures, the economy appears to be doing fine. No, scratch that, it appears to be booming. But as always with the United States economy, it is not quite that simple. For every encouraging sign, there is an explanation.”
Well, yes, there’s always an explanation. And here’s an obvious one: no economy is perfect.
Case in point: In 1996, with the economy humming along nicely, Alan Greenspan warned about irrational exuberance. In the speech where Greenspan coined the phrase he expressed concern about “unduly escalated asset values, which then become subject to unexpected and prolonged contractions.”
Four years later in March 2000, the technology-heavy Nasdaq reached its peak, and the technology bubble began to lose gas. The economy dropped jobs in the months of June, August and October 2000, and job losses continued in 2001 through May 2003.
And this highlights the other obvious fact about economics – as a dynamic system, the economy waxes and wanes over time.
She’s a sensible voice in a world of hype and hoopla!
UPDATE – Betsy Newmark has some more interesting links on this subject.
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