Have you noticed that the only economic news most of the mass media is talking about is gas prices? That’s because it’s the only bad economic news. Consumer prices apart from oil are relatively stable, the number of jobs are increasing, unemployment is down, housing starts are up, companies are capitalizing. But the media don’t want to highlight the good news. They want the bad news to beat over George Bush’s head.
But a funny thing is happening. Despite all these high gas prices, demand is not decreasing. People are still traveling just as much. The costs are not generally being passed on to consumers and when they are they’re not affecting consumer behavior. Granted, prices cannot continue to rise or even stay where they are forever without affecting the economy. But the reality is that despite what the media says, while inconvenient, the current high gas prices are no the economic disaster they’re hoping it is.
You’re right of course, Dom. The media routinely virtually ignores the good economic news and hypes the bad. The truth is, the economy is now growing nicely, jobs are now being created, and while gas prices have risen, they are in the mid-range of gas price levels historically, adjusted for inflation. Still, gas price levels do affect some people’s votes. It’s a sensitive topic in these United States!