Why are people so down about the economy?

Question

It seems like no matter how many positive economic indicators are reported, people in general all still expect the worst. Is the economy really that bad?

It also seems like those who proclaim the loudest how lousy the economy is are also the ones with the least credible explanation for why.

Answer 1

It seems as if a negative atmosphere for the economy's image came around in the '01 recession and the whole decline after 9/11 and seemed to stick around until today. Whether or not the economy is bad, people are going to think it is because of this negative impression left in their minds. Some people say it's a biased media others political propaganda, either way, not half the people who attack the economy know the slightest thing about it.

One thing, however, that could effect their outlook is how the economy (or society and the government) is currently affecting them. It seems as if many complainers today claim inflation has driven the cost of living, yet middle class wages are staying the same. Some are even disappearing - look at the job outsourcing. Also many middle class home require a middle class wage and a half to keep them going (supposedly). What it boils down to is the fact that SOME (not all) middle class people are squandering too much money on overpriced goods and services they usually don't even need, and barely focus on investments (a prime indicator of economic health). And the poor, well they're another story.

Answer 2

The economy is falling apart, if the media told the truth about what was really going on in the economy chaos would break out and we would be in a great depression. The government controls what we are told by news corporations for our own good, I was told by a top corporate executive that we are in a silent recession, which I totally understand and agree with. Contrary to what many of you have said, the idiots are the ones who believe what the media tells them, the intellects are the ones who make predictions from observation, personal experience and an extensive range of variables.

Answer 3

There are lies, dammed lies, and Statistics. Take the unemployment rate, it is not the number of people who are unemployed in America. It is the number of people who collect unemployment insurance.

1- So if you were fired or quit, then you are not counted. If your unemployment insurance expires, you are also no longer counted.

2- Poverty, if you belong to a family of 4 and make a combined income more than 24K a year you are not considered poor. So you are telling me, I can raise 3 kids on 24K? Yeah right! Friggin 2 bedroom apartments average 1K a month where I live, that is half my income for a home that can not provide enough space for my family.


--Those are two good examples of how Statistics are used for trickery, there are many more. If you want to know about em, investigate, like I did.

Answer 4

Is the economy all that bad?

No.

Its doing pretty well in fact.

But. And its a nasty one.

Consumer sentiment and spending (on durables) is showing signs of weakness. This, imo is due to the sub prime worries (which are not unfounded). As rates climb people who cannot afford the ARM are being priced out of their home. Now while this seems to be hitting the least fortunate of us its psychological affect is tainting all incomes. People here of others losing their homes and they get scared.

"What if it happens to me? I'd better spend less just in case."
"What is the market and the economy going to do? I'd better spend less just in case."
"I'd like to buy a house but all these people losing their homes...I'd better wait to buy a house."

I'd watch the consumer sentiments, durables and savings rates. If the first two go down (they are weak) and the third goes up...the economy will begin to slow.

you can figure it out from there

Answer 5

most "indicators" that have been reported as increasing have little effect on the lower 80 percent of the American population... things like the stock market and earnings reports for companies, top level salary increases

but many of the indicators that have been doing poorly relate directly to the lower 50 percent... things like increases in mortgage forclosures, bankruptcy rates, health insurance increases and more...

I've found the richer a person is... the better they think the economy is doing... and the poorer... the worse... from my experiences...

rich getting richer... poor poorer...

Answer 6

i think our economy is dividing the wealthy are seeing a boom while the middle and lower are seeing stagnate wages and less buying power

and to scotts comments ... hey if a 16year old is going to tell me i am wrong i shouled do him a favor and do the same
"Media = Liberal" tell that to fox and all the conservative radio

"Our economy is booming, and it always will be, no one can beat America's economy"
econ 101 recession happen


EDIT
CHINA WILL NEVER BEAT THE U.S. ... .....WHAT MAKES YOU THINK CHINA IS BETTER, ......
where do most of the things you buy come from.. sorry let me rephrase that where does most of the thing your parents buy come from? my guess china i don't think china is better than us but if they decided to no longer do business with the US our economy would be messed up for 10 to 30 years

Answer 7

Everyone rushing to WALMART to buy crap made in China and put it on thier credit card does NOT help the economy. It only makes the WALTONS and the Bank Rich.

Answer 8

Perhaps losing you home due to rising mortgage payments, cost of gas, utilities, food, medicine, health care and the list goes on is the reason.

Answer 9

I don't care what the media says about the economy...I'll listen to whats going on around me..and its not so chipper

Answer 10

Most of the people trashing the economy don't have any money in the market. The market always goes up and then comes down a little. People who poo poo our economy are mostly uninformed idiots.