Suitably Flip

Pay Attention, America - Part II

Hey, American consumer, why the long face?

The Conference Board, a New York-based private research group, said Tuesday its consumer confidence index fell to 101.7, down from a revised 106.8 in January, stalling a rebound that began in November following the Gulf Coast hurricanes. Analysts had expected a reading of 104.0 in February.

In a statement, Lynn Franco, director of The Conference Board Consumer Research Center, said "consumers are growing increasingly concerned about the short-term health of the economy and, in turn, about job prospects."

As for the short-term health of the economy, let's dig way into the archives and retrieve this morning's post, citing predictions of 4.5 - 5.5% annualized GDP growth this quarter.  As for job prospects, look no further than this CNN/Money article, detailing the sizzling job market by which the class of 2006 is enjoying being courted.  If you must look further, look here.  Unemployment is down.  New jobless claims are down.  Productivity is up.  Corporate earnings are up.  (These are good things.  Confidence-boosting things.)

Wait, shhh... I hear a collective whine emanating from the ethos:  "But aren't all these new jobs flipping burgers, while skilled labor is laid off or sourced overseas and real wages and buying power at home are falling?"

No.

Returning to the class of 2006, most can expect to outearn the class of 2005 by a fair clip beyond inflation (see table at right).  Across the board, real wages are increasing.  New, more productive, better paying jobs are being created week after week, month after month, quarter after quarter.  The gulf between the economic reality and the apparent perception of reality suggests either that Conference Board's index is flawed or that there is a massive fundamental misunderstanding among the American public as to the true state of the economy.

But what could possibly account for something like that?

Your economic prospects are bright, American consumer.  Now quit being such a grouch.  Nobody likes a worrywart.

You used to be cool, remember?

Previously:
4Q GDP Revised Upward
America's Secret Prosperity
And Tax Cuts Said, "Let There Be Growth."
Pay Attention, America!
2006 Economic Report of the President
Speaking of Taxes
Reason #411 Why Congress Must Make the Tax Cuts Permanent
Liveblogging the State of the Union
Oh Tax Cuts, Is There Anything You Can't Do?
Tax Cuts To the Rescue
Yet More Good Economic News
The Facts Are Not Enough
I Believe I Can Buy

Comments

Pay Attention, America - Part II

Hey, American consumer, why the long face?

The Conference Board, a New York-based private research group, said Tuesday its consumer confidence index fell to 101.7, down from a revised 106.8 in January, stalling a rebound that began in November following the Gulf Coast hurricanes. Analysts had expected a reading of 104.0 in February.

In a statement, Lynn Franco, director of The Conference Board Consumer Research Center, said "consumers are growing increasingly concerned about the short-term health of the economy and, in turn, about job prospects."

As for the short-term health of the economy, let's dig way into the archives and retrieve this morning's post, citing predictions of 4.5 - 5.5% annualized GDP growth this quarter.  As for job prospects, look no further than this CNN/Money article, detailing the sizzling job market by which the class of 2006 is enjoying being courted.  If you must look further, look here.  Unemployment is down.  New jobless claims are down.  Productivity is up.  Corporate earnings are up.  (These are good things.  Confidence-boosting things.)

Wait, shhh... I hear a collective whine emanating from the ethos:  "But aren't all these new jobs flipping burgers, while skilled labor is laid off or sourced overseas and real wages and buying power at home are falling?"

No.

Returning to the class of 2006, most can expect to outearn the class of 2005 by a fair clip beyond inflation (see table at right).  Across the board, real wages are increasing.  New, more productive, better paying jobs are being created week after week, month after month, quarter after quarter.  The gulf between the economic reality and the apparent perception of reality suggests either that Conference Board's index is flawed or that there is a massive fundamental misunderstanding among the American public as to the true state of the economy.

But what could possibly account for something like that?

Your economic prospects are bright, American consumer.  Now quit being such a grouch.  Nobody likes a worrywart.

You used to be cool, remember?

Previously:
4Q GDP Revised Upward
America's Secret Prosperity
And Tax Cuts Said, "Let There Be Growth."
Pay Attention, America!
2006 Economic Report of the President
Speaking of Taxes
Reason #411 Why Congress Must Make the Tax Cuts Permanent
Liveblogging the State of the Union
Oh Tax Cuts, Is There Anything You Can't Do?
Tax Cuts To the Rescue
Yet More Good Economic News
The Facts Are Not Enough
I Believe I Can Buy