The economy is falling!
The recent economic disaster is hitting Americans hard. With gas prices at around $4.00 and houses not selling, this country is in crisis. People in this country have had to change the way they spend their money. With more and more people living paycheck to paycheck businesses in America are faltering. Prime example: The movie industry. This past weekend, Batman just made $155.34 million over 3 days. Horrible. Apple's IPhone is sold out. Apple can't keep up with demand. All signs of a sliding market place.
Seriously, there is not the economic horror show the news media want people to believe. It is all election year doom and gloom. We suffered through the same misinformation last election year. Even during the mid-term elections there was this news the economy went bust. Did the economy slow down? Yes. Is it the great depression? No. Gas prices are up and homes aren't selling like they were. Is this permanent? No. This is a temporary situation. Like the tides, the free market rises and falls. I would even suggest, like in past elections, once the votes are in and the ballots counted, the economy will magically be fine again.
But people are getting laid off. But businesses are closing. Poor Starbucks has to close shops. Are these products of a slipping economy or these products of other forces? Would these closings even make the news if it wasn't the hot button election year story? In Starbucks case, it is a product of over extending. Some of the towns they put stores in can barely support Taco Bell much less a gourmet coffee establishment. The fact is unemployment still hangs around 4%. The lowest in the world.
So when you hear the economy is falling, the economy is falling, take it with a grain of salt. It is just a scare tactic during an election year.
3 comments:
Well said... and to the Starbucks point, and it has only been mentioned in one report that I have heard, while they are indeed closing 600 stores... they still are on track to OPEN several hundred new stores this year and early next year
I agree that much of the doom and gloom is media hype. I do, however, take issue with you saying that people are spending money so they can't be that bad off. People are spending, but an increasing number of young people are spending themselves into major debt as they max out multiple credit cards. These folks either don't understand, or more likely know but ignore, the danger of this spending practice. So while consumer spending holds, people are putting themselves behind the eight ball with minimum payments a fast track to bankruptcy. I'm hardly an economist, but this can't have great ramifications, can it?
Also, as far as Starbucks, you are right that there are other factors at work, as well. Mcdonald's supposedly has better coffee drinks(I don't know, I don't drink coffee) at better prices. Hell, there are three Starbucks in Easton, MD; two are in the same shopping center. Cra-zee.
Good point but you are always going to have those people that can't control their own spending. As far as long term ramifications...they will be on the personal level not national. The problem right now stems from media hype. The media is using smoke and mirrors to try to influence the vote this fall.
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