Both economists and the Romney campaign are puzzling over the same paradox: The recovery has flagged and yet the country’s mood appears to be improving (link).
The numbers are not in our favor, yet people are feeling better about the future of the economy in the country. Does anyone else feel this way? Do you consider this to be a "half-full, half-empty" perception? If so, do you think these thoughts has/will help the economy improve?
I think that the recent rise in optimism by citizens about our economy has more to do with the upcoming election that the information that is being presented to the people. Advocates for the democratic party seem to be happy with where the economy is heading and portray this through feelings of security. However, I do not think that these thoughts of security and improvement will actually help the economy. Regardless of the optimism that is held by a low percentage of Americans, the economy is still in a great need of assistance.
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ReplyDeleteIt seems as though some of the optimistic perceptions that people have towards the economy can be attributed to the fact that despite slowing down, jobs are still being added, the unemployment rate has not gone up in any significant amount, and things have seemed to become more stable. There is no doubt that much work is to be done, and I agree with Brandon that with the upcoming election, people feel like change (for the better) is right on the verge of happening.
ReplyDeleteBelieve it or not, the country's perception about how it is doing can have a real impact on the actual state of things. This is due in large part to the stock market. Essentially the stock market is a numerical reflection on the confidence in american business. This can be greatly influenced by perception over actual figures. If the country as a whole continues with this positive mind set, we should see a rise in overall stock prices. When that happens people start investing and the economy will improve. It is not an exact science, but there does seem to be a correlation between the two. Attitude is everything indeed
ReplyDeleteI would argue that things are improving, and the American economy is back on the rise. It may be a slow and incremental progress, but i would argue contrarily -- That Republicans will continue their complaining due to the election this year. Romney/Any republican would would never highlight the economic improvements currently being made, because they stand to support Obama's position in the White House. "Though the recovery is weak, it has persisted, with employment and wages rising". Wages and consumer spending has also been on the rise. Job creation has also improved with 400,000 jobs added according to new (revised) numbers from the Labor Department.
ReplyDeleteOne thing for certain, the economy has not worked in a negative fashion, it may be slow to improve, but it will not decline in the coming months--working certainly in Obama's favor over Romney.In the words of Professor Vavreck, "Incumbents in growing economies, even slow ones, are hard to beat"
I believe right now we are in an economic period where households are not directly feeling worried about the economy. For example, during the financial crisis many homeowners were struggling to pay high mortgages. Anyone who owned property felt a decrease in their assets because of low real estate values; the same with people who invested in the stock market. Right now worries about our economy are more macro structured because of policy changes. Obama’s health care laws are a prefect example of this. These laws are changing the big picture of our economy, but it will be a few years before people are feeling their full affects.
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