2005/08/27

Economy 101

I’m one of those people who have little understanding of economics. Oh sure I can balance my personal checkbook and stick to a budget. Sometimes. However, it’s the country’s economy that often confuses. I mean, the Bush administration says that Americans are doing very well. Yet, Americans counter with oh no we aren’t. So what’s up with that?

This morning while going through the Commercial Appeal, I ran across an editorial by Paul Klugman. Klugman explained part of the reason for confusion.

According to Klugman,
The administration and some political commentators seem genuinely puzzled by polls showing that Americans are unhappy about the economy. After all, they point out, numbers like the growth rate of G.D.P. look pretty good. So why aren't people cheering?

While American families
… care about whether jobs are available, how much those jobs pay and how that pay compares with the cost of living. And recent G.D.P. growth has failed to produce exceptional gains in employment, while wages for most workers haven't kept up with inflation.
Works for me. I know this all seems too simple but there is more.

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