It was an up and down week for Wall Street. After a Monday holiday, and some turmoil in the overseas markets, due to a global stock sell-off, it was a wild ride on Tuesday as the Dow Jones Industrial Average fell 465 points within minutes of the opening bell. It rebounded nicely to gain most of it back, only losing 128 points for the day. The average leveled off the rest of the week, ending up 107 points since the stock market's opening on Tuesday.
That is right! The Down Jones Industrial Average ended up for the past week! So where did you hear that? Hardly nowhere.
Naturally, it is the fault of the mainstream media. Always on the lookout for the shock spin of items to grab those ratings, no media outlet is going to tell you good news. If you follow the way they have been covering the economy, a terrible recession is on its way soon!
The state of the US Economy is a far cry from what you may have heard. Overall, it is strong and in good shape. GNP (Gross National Product) was a healthy 4.9 % for the 3rd quarter of 2007 (the latest period we have info for) and unemployment is less than five percent. Here is the big figure: Inflation actually decreased 0.1 percent in December! In addition, have you also noticed the price of Oil has decreased over 10 percent in the past month?
Granted, there are places where the economy is not so hot, such as the Michigan, with a down auto industry, and California, where the housing market is stagnant, however, the overall condition of the US Economy continues to fare extremely well. What happened on Wall Street in the past few days was a good example of that, as the Market corrected itself. That is what strong free markets do. Leave them alone.
The biggest threat to our Economy is government intervention. Restrictions in the form of legislation will always slow free trade on both the consumer and the seller. Higher taxes will always take away money from the consumer to spend some where else and the seller to expand or improve their products. This is important to know in an election year.
The majority of the journalists in the mainstream media vote democratic, so it is easy to understand this is another reason why their coverage of the economy is almost always negative.
Democrats love taxes, and they generally can an adverse effect the economy. Or course, let us not forget that one of their guys is not in the White House.
So take all this media coverage with a grain of salt, the US Economy is doing fine.