The Economy, Media, and Government

We all know the economy is bad right? Unless you have been living under a rock, somehow, someway and maybe even someone you know has been affected by this slumping economy! Believe me I know, I live in the state that seems to be taking the worst beating over this economy: Michigan.

However do we have to be reminded everyday about how bad the economy is? Really is the economy that bad? Well it depends really on how you are being affected by it. Sure unemployment is the leading indicator and if you are unemployed, certainly you are one that is feeling the ever tightening grips of this sluggish economy!

I am one of the fortunate ones that have a job, and believe me I am thankful everyday that I have the job that I do. The job that I have also gives me a different perspective on the economy as well. Being in retail and employed by a retailer that seems to be bucking the trend and actually turning a profit gives me this unique opportunity and perspective on the economy.

The first point I would like to make is that the media needs to calm down on feeding the doom and gloom of the economy. I have stopped listening to the news and have noticed that I am less concerned about how bad the economy is. As I have mentioned I work in retail and I still see money being spent on a daily basis on wants over needs!

How bad is the economy? If the economy was really that bad would the release of Harry Potter at midnight July 14th really be able to gross 22.1 million dollars in one night, setting a record for a single night release.

The second point I would like to make is that I find it absolutely amazing that banks that have taken TARP money are currently posting profits! How is this? Banks have frozen line of credit, shut off lines of equity to home owner and have for the most part stopped lending money! Isn't lending how a bank makes a profit? So if banks have slowed down their lending practices, then how are they able to turn a profit and so quickly after TARP? I have a feeling that banks are taking that TARP money and turning around and investing it into safe securities and it’s the interest or ROI that they are posting as profits! If banks turned the flow of money back on to the consumers, allowing consumers to access lines of credit, equity and mortgages the economy would start moving in the right direction without the need for government intervention.

This brings me to my final point; all we have learned from having a government interfere in a free trade system is that it only compounds the problems. Money given to banks has not ended up into the consumer’s hands like it was intended to happen and companies being saved from bankruptcy only turn around and still files bankruptcy! I say it’s time to allow the economy to run as it is intended and get the government out of it! Let the weak companies fail and the strong companies prevail. The only thing that I have seen come out of government interference with the economy is a larger debt that seems to be dragging our economy further down, rather than speeding up the process for recovery.