Monday, August 29, 2011

WaPost Confuses Cause and Effect

The headline on this morning's story is "Consumer Fears Put Economy on the Brink", indicating that our current state of economic torpor is somehow the result of the hesitations of bespooked consumers.  And while such consumer attitudes do play a role in recessions and recoveries, the behavior of consumers is generally believed to be rational in its response to the economic environment, while the article seems to pay little or no attention to the policies that may have contributed to the growing sense of angst. 

Put another way, consumers are spooked because they see an uncomfortably liberal President leading from behind and a Congress beholden to the extremes of its base(s).  They are increasingly wary of the basic fiscal stability of their country and their own future prosperity--let alone that of their children (which used to be an American birthright--or so it seemed). 

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