Positive Economic Reports….I’m going to be rich!!!

Economic Policy, Economy, Politics

Adam

I’m not sure where the broad publics’ head is at with recent positive news coming out on the economy. Some commentators I have read lately (and Senators Schumer and Reid) are talking about the economy turning around. The fall has occurred and its all UP UP UP from here… Well maybe there has not been that much optimism from them, but its out there. Does this kind of optimism worry anyone else besides me? Luckily I am not the only one who is worried.

The economy has been taking a hit on a regular basis for quite a while. There is a good description of where all of this positive movement is coming from, but I would rather relate it to a very likely scenario out there now.

Try to imagine that you are an employee at RSPC (The Really Smart People Company) and, in order for the company to continue operations with the existing workforce, all employees are asked to take a pay cut…lets say a 25% pay cut. Okay, you have your pay cut, times are tough, so you just deal with it. When a couple of things begin to go better RSPC decides to give you a 5% raise. The RSPC is ecstatic over the news that they are making a profit in the first quarter of the year and they believe things are turning around. Now, as the employee, are you as excited about that 5% raise, or are you still upset and wary because of the total 20% hit you are still feeling?

Good news is still good, but lets take it with just a little perspective.

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4 Comments

  1. Anna (Who am I?)  •  Apr 12, 2009 @3:51 pm


    I’m worried. None of the root problems are being addressed and if things are getting “better” it’s only for the stock market and the banks and it’s temporary. Things are going to get worse again.
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  2. Tony (Who am I?)  •  Apr 12, 2009 @6:35 pm


    This is certainly a large conversation regarding the progress of the economy. I haven’t been following the economy all that well due to the growing economy in my neck of the woods: Texas. I have only been here a year and there is a reason why I am a transplant, this is where I could get a job and I am not the only one.

    I certainly have sympathy for those in rough economies. The failing housing market is a big topic for urban planners. Finally the national government is piecing together transportation and housing and I look forward with optimism that the American community will figure out some smart new ways to protect the market through smart growth.

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  3. Adam.BTA (Who am I?)  •  Apr 12, 2009 @10:30 pm


    Tony,

    Thanks for the comment. There are definitely parts of the country that have far greater dramatic effects from the recession. Before this, there is no doubt that I thought of tough economic times as only a regional problem. Now this has changed the way I think of economic issues, as I’m sure everyone has.

    At the planning level, people are buzzing all over the country. The stimulus bill is bringing a lot of exciting projects on line that a few years ago seemed like pipe dreams. That being said, the amount of stimulus money was less than I was hoping for, I would have liked $800 billion for 2009 alone. Also, I wanted much more money to go to infrastructure as described in my post from a few months ago, http://beyondtheargument.com/?p=16.

    Texas is positioned well to keep things moving along and will probably do well in the future. So with that, you’re in a great place for growth and development.

    I can’t wait until my pessimism is replaced with a little bit of optimism.

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  4. Adam.BTA (Who am I?)  •  Apr 14, 2009 @9:04 am


    Another article highlighting the fact that we could only be at the beginning of a long ride down to the bottom.

    http://krugman.blogs.nytimes.com/2009/04/11/green-shoots-and-tea-leaves/

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