The stock market is at a record high. Other economic indicators, including a slowly decreasing unemployment rate, a rebound in the housing market and ever-increasing consumer confidence, indicate that our country is continuing to recover from a massive recession that commenced a few years ago.
Is it time to rejoice? Maybe just a little, but you might think twice about too much rejoicing, as some in the know say the alleged economic vitality is so much fool’s gold.
We agree that there are economic issues about which we should all be concerned. Some economists say much of the nation’s financial recovery is connected to low interest rates set by the Federal Reserve. Those rates have engendered a lot of investing and much money circulating, but economists say it is inevitable those interest rates will go back up.
Other economic experts say freight orders are down, which means businesspeople are not truly confident in the economic recovery and therefore are not restocking their wares. They also say Europe’s economy continuing to plummet is not good news for our country.
On top of all of that, we have a squabbling federal government that seems to be rushing to a financial precipice every few weeks. The government actually went off the cliff, via the sequester, earlier this month. Fortunately, the fall doesn’t appear to have been as drastic as anticipated and the damage assessment has been minor … thus far, anyway. But there is endless discord in Washington, even before the issue of entitlement reform has really been put on the table.
We are not saying we should not be happy the Dow Jones Industrial Average hit record numbers this week. All in all, that is a good thing. Still, there is much that needs to be reformed in this nation’s economic system before we are on truly steady financial legs.
That won’t happen until people from both sides of the aisle sit down and seriously talk … which doesn’t exactly seem to be on the horizon.
THE ISSUE:
Economic numbers
WE SAY:
Happy but wary
WHAT DO YOU SAY?
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