How Bad Is The Economy?

Yesterday, I wrote an article about our economy for the readers at our store website (UniqueMotif.com). Today, I thought I should post it at cominus, also. Here is the text:

Everywhere we go, it seems people want to talk about how bad the economy is. The news harps on it so much that people get the impression it is worse than it is. We have even had a few people that have come into the store and want to talk about the economy – and I am always willing to give them my opinion of the matter. But that does not seem to sway them, even though they still have a job. They usually end the conversation with something like, “I really like your store; I hope you make it.” Ironically, these people never buy anything!

It surprises me when business people seem to be convinced the economy is bleak. Why would anyone want to be in business if it was a worthless cause, or if all their efforts were destined for futility? I heard Dan Kennedy say something like, “there is no good economy and no bad economy – only your economy.” This is so true. The macro-economy of our entire nation boils down to the micro-economy of each individual. If we are a nation of individual industry, we will be a nation of industry – and our economy will be what we make of it.

The news paints a bleak picture and at the time of this writing, unemployment hovers in the mid sevens. If you recall the seventies and early eighties, when interest was in the double digits, unemployment was also in the double digits. President Carter devised a formula that he called the misery factor. We are not there yet. The Great Depression hosted twenty-five to thirty-eight percent unemployment. We are far from there. In fact, today, ninety-two and a half percent of the working people are still working. You won’t hear that on the news.

Another thing you will not hear on the news is during the month of December – remember that is the month with “record breaking” layoffs and such – wages and benefits were up point seven percent. Also, in December, consumer costs were down point seven percent! Amid all this bad news, the consumer – that’s you and me – had a net gain of one point seven percent. You won’t hear that on the news, either but you will find it on the website of the Bureau of Labor Statistics.

One recent morning a national newscaster was talking about unemployment and said she did not know who would be hit next and that no job is safe. Then she began crying as she told us we don’t know how low this will go. The radio stations usually repeat the national news over-and-over all day long but this was a little over the top and I did not hear it again. A couple days later, this same gal told us the unemployment numbers were looking better this week. Then she said, “but let me tell you why this is not good news.”

Another tactic the news media has incorporated to exaggerate the bad news is listing all the global layoffs by global companies and giving us the impression these are American jobs when only a fraction are. For some reason, the news media is concentrating on bad news and trying to make things worse than they really are.

For anyone out there on unemployment, I hate to say this – and please do not take it personal, but please hear me out: One of the problems we have is unemployment compensation – people depend upon it. First, they depend upon their job and then they depend upon unemployment compensation if the job fails. This safety net is the mindset and few become creative until the benefits start running out.

What would most these people be doing if there was no safety net to rely upon? I don’t advocate removing unemployment compensation entirely but I do advocate removing our reliance upon it. There was a time we did not have this – and we somehow managed to get by. One thing the news does not tell you is how many of these unemployed people transition into new careers and/or start their own businesses. People – that’s you and me, again – will get creative when they have to.

Probably one of the reasons for this safety-net reliance is the government run schools teach us to get a job – that may or may not be without a degree – instead of teaching us how to get skills and how to think creatively. What did we ever do before we had jobs?

The economy of the United States of America, rough as it is right now, is the soundest in the world and it holds the most promise – even if our politicians botch it up by trying to help us out. The people of America are creative and when push comes to shove, they will pull their boots on and get to work – on something.

Another thing that gives our nation stability and promise is our faith in God. The media would have you think there are few left who actually believe in God but the fact of the matter is most the people in our great nation still do believe in God Almighty and they pray to Him. I believe in the power of prayer and I believe God hears us. I believe He provides for the sparrow and He will provide for us.

Keep looking up – have faith in God. He will provide for your every need – even if the news media has you scared half to death.