If you read just a little economic news, you should be quite depressed. We have the potential for a double dip, the American consumer is not spending, industry is not hiring, real estate is falling again, and any bit of good news that does get out is immediately explained away by the dark linings around it. So your profit is up, but what about total sales? Can you maintain it if the economy falters? What if the dollar gets stronger, will exports suffer or if it gets weaker will energy prices overwhelm us.
The dismal science indeed. Like most news, there is much upside to being a Pollyanna. If you accept good news at face value, you suffer from credibility problems. Generally, you want to hedge your news with some gloom. The unemployment rate is down, but only because so many job seekers have despaired.
Then, the pundits are shocked that consumer sentiment is down. Further, real estate sentiment is down too!!
There are real problems in our economy, but company after company has found ways to make money. This profitability will lead to jobs, although we have to accept that productivity improvements are not going to be simply thrown away.
Real job growth has to come from the growth of domestic and renewable energy including the retrofitting of many structures and a reform of our tax system to make sure everyone doing business in this country is on an equal footing.
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