This article in Reason repeats two themes that I have tried to stress in these pages about the current economic woes:
1. The economy is in a much better state than all the chicken-littles in the press would have us believe. Not only have there not been two quarters of negative growth yet - the definition of a recession (the US economy has grown in both quarters of 2008), but the rate of growth has been increasing; 0.6% in the first quarter (at an annualized rate) and 1.9% in the second. In other words, growth in the US economy is accelerating!
Of course, this is not to deny that there are many things currently wrong. Oil prices are punishing high and the US housing sector is a disaster. But compared to any previous recession, the current unpleasantness is a cakewalk.
2. The second is that people are far too eager to look to the government to solve their problems for them. If you are bankrupt because you bought a house with zero down on a variable rate mortgage and no wiggle room in your personal finances, that should be your problem, not the government’s. And if you work in GM of Oshawa, you shouldn’t sit around and wait for the bitter end. You should take the $100,000 buyout they are now offering and go to Alberta and work on the tar stands. There is a desperate shortage of workers out there and all the jobs are high paying.