Monday, July 18, 2005

Good News!

The economic report from June is very encouraging. All signs indicate that our economy is on strong ground and getting stronger. The federal budget deficit is falling to $333 billion dollars this fiscal year. That is down from $412 billion in 2004. The reports show that the President is on his way to reaching his goal of cutting the deficit in half before a self imposed deadline of 2009. After a recent Cabinet meeting Bush stated that this is “a sign that our economy is strong, and it’s a sign that our tax relief plan, our pro-growth policies, are working.”

The main reason for the shrinking deficit seems to be due to tax cuts put in place by the Bush administration. While initially after tax cuts there is a fall in tax revenue, eventually there is an increase in overall revenue. This is because of the incentive to invest and work and produce goods because of a lower tax rate. There is also a reduction in government paid benefits encouraging people to get a job and get out from under government dependence. In other words it is classic supply-side economics.

Even more encouraging are the strong signs of consumer confidence. Retail sales are up 1.7%, stocks are up, unemployment is down and even with high gas prices Americans are still going on vacations. According to the Commerce Department’s Bureau of Economic Analysis spending is up 6.6% from January through March as compared to the same time frame from last year.

I’m not an expert on the economy nor will I claim to be but this news is very encouraging even to the novice. If you are reading this article and this is the first time you have heard any of this I’m not at all surprised. Apart from a few sound bites and a few small back page articles I have not heard a whole lot from our media about our strengthening economy. The facts and figures mentioned in this article come from research done via the internet. The information is there it just takes a little work to find it.

Most people want to hear about what is happening in Iraq and the war on terror. Some people want to be kept abreast of the Karl Rove controversy. Everybody wants to know about the economy. If this is true then why wasn’t the economy more of a headline over the weekend? Probably for the same reason you have not heard much good news reported on Iraq or the war on terror. You get a body count every night but not much on any successes. You can bet your ,now strong, bottom dollar that if the economy was going south it would be headline news.

The left-wing media bias is at work again. Report as little as possible about any success the Bush administration enjoys and spin as much negativity as possible. This is especially true of the economy which is greatly influenced by consumer confidence. Far be it from them to do anything that might give credit to Bush’s economic policies and bolster that confidence. The media is dominated by left-wing liberals and they are usually pessimistic by nature, but there is good news out there. I encourage you to do a little research and read past the front page headlines to find both sides of the story. Most importantly, enjoy the economic upswing. Take advantage of investment opportunities, low interest rates, and go on vacation!
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