Friday, March 05, 2010

Good news for people who love bad news

Yes, the economy lost more jobs last month, and yes the unemployment rate is still 9.7%, but in some sense this is what qualifies as "good news" these days. Job losses were predicted to be higher and the unemployment rate was predicted to rise, so this qualifies as a "better than expected" jobs report.

I continue to think that the economy is turning the corner and that we are more likely to get a faster than predicted recovery than we are to get a double dip recession.

I also think that the biggest threat to a robust recovery is not a lack of further government action, but rather the threat of further government action in the form of higher taxes on corporations and entrepreneurs. 
 
 

4 comments:

Anonymous said...

"I also think that the biggest threat to a robust recovery is not a lack of further government action, but rather the threat of further government action in the form of higher taxes on corporations and entrepreneurs."

Wow, who could have predicted this statement?

Adam Dynes said...

And don't forget all of the uncertainty caused by potential government action. How is any business suppose to move forward when they don't know when or how the government's going to change the rules of the game.

Unknown said...

We also have the meddling in health care which will stimulate some areas and depress others, each of which would not have otherwise happened. And your biggest worry seems to be highly probable given the current status of many state and federal debts and other promised government expenditures. In other words, given your worry and the direction in which the government is heading, I'm confused as to why you're so optimistic.

Angus said...

I guess I am optimistic on the economy because

1. cap & trade seems dead

2. I don't think health care is going to pass

3. AGW hysteria appears to have abated

4. If we can make it to November, then full gridlock will hit DC big time.