Why is the economy so bad, but the news says it's great?

Answer 1

People judge the economy by their own incomes, but the news is about aggregate values. Over the last 30 years, and in particular since 2000 GDP growth has not been wage growth. See graphs at
http://visualizingeconomics.com/
to get a long term picture of what the problem is.

Answer 2

Because it's not really bad. It's not as great as it could be compared to previous years but U.S. is still the wealthiest nation in the world. The U.S. also has the largest economy in history so if a couple major companies go bankrupt (ie Enron), an incredibly explensive war is being funded (ie Iraq), and the unemployment rates go down, the U.S. will still function properly and not be in too bad of shape.

Answer 3

Your economy and my economy (money we have to spend) may not be great; but, combining everyone's income, savings, investments, economists will determine we are economically sound; even performing beyond expectations.

Accounting and statistics are disciplines the ordinary person cannot fathom; easily manipulated through creativity. Money can be moved, numbers skewed to project a predetermined outcome.

Answer 4

There has been a lot of attention given lately to record highs in the American stock markets. That indicates that a lot of money is in those markets, and secondarily that a lot of money is presently invested in publicly traded companies. To some, that is a signal that the 'economy' is 'strong.' To me, that might indicate that, for lack of something better to spend their money on (like consumer products or debt instruments), people are investing heavily in the stock market. Or, it might indicate a high level of foreign investment in our domestic markets. I have no instant way of knowing the reason for it, but recently, the market seems to think American stocks are hot. It may be because of instability in other parts of the world. It may be because interest rates are low and debt instruments aren't that attractive.
Americans may be more focused on investment, which may render them (they each only have so many dollars to allocate) less focused on consumption. So, your question privileges some particular perspective on what is meant by "the economy."
The only measure I know is whether the people in my neighborhood are doing okay.
If people in my neighborhood suffer the loss of jobs, homes, or other important relations in the name of corporate profits, I am ashamed of the 'human' systems that have made that come to pass.
I regard the recent highs in American stocks as:
1) a barrier to entry for people not already invested in those markets.
2) not sustainable in an environment where more companies with more offerings are competing for less money in the consumer market. (more money invested means less money spent on goods and services.)
The economy is not good or bad. It simply is what it is.
Instead of regarding record market capitalizations as "good," people need to recognize them as a reallocation of resources out of one (or more) market into another, because that is what they are.

Answer 5

If the news says it is great, and the underlying economic statistics say it is great, why do you out of hand claim that it is bad?

Because some guy trying to get your vote tells you so?

Answer 6

Because it really is great. What's bad about it? Why don't you come back and ask a specific question about some economic statistic that you think is bad.

Answer 7

the economy is bad to you from a persona practical standpoint, but good going by numbers disassociated from people taking a lot of factors into account. its great in total but not in specific.

Answer 8

the US had a very uniqe way of getting money set up by Presadent Ronaled Reagn he gave loans to poor nations and had it where we where "in debt" but all are money we where getting was coming back into the goverment and the system. but presadent clinton meesed up the system so where now having to work on the debt. But the country itshelf is doing gret as far as moeny is conserend

Answer 9

I'ts called propoganda.

Also if enough people believe it, the economy might stay fairly bad instead of tanking to truly horrible.

Answer 10

nobody says that unless they r lying