Calm down! The American economy is not collapsing.

Everywhere I go, there’s someone saying: America’s economy is collapsing. As media hysteria continues to ride roughshod over any sense of perspective (and as wishful-thinking in some quarters drives otherwise sensible people into lip-smacking meltdown), some sensible analysts are still talking sense. The National Post’s Terrence Corcoran brings us back to earth with this front-page column, “The D Word Going Cheap” :

The Great Depression, massive in scale and scope, dug a deep trench through U. S. economic statistics of the 1930s, numbers so big that today’s comparisons have little meaning or relevance. Industrial production fell 50% between 1929 and 1932; prices fell 20%; real incomes of Americans fell 35%; the stock market plunged 75%.

Nothing remotely near this kind of meltdown is on the horizon. The United States, which actually grew 3.3% in the second quarter that ended two months ago, has yet to show meaningful signs of recession. None of the standard indicators of economic slowdown — unemployment, payroll employment, civilian employment, industrial production — point to serious recession, let alone something worse.

What recent events suggest, however, is that by the time the new president is sworn in next January, the worst should be over. Yesterday’s U. S. stock market drop, while the largest Dow correction since 9/11, was remarkably orderly. By letting Lehman Brothers slide into Chapter 11, the U. S. government appears to have put an end to its attempts to bail out failing institutions. This can only hasten restructuring along market lines and based on actual values.

That Bank of America appears to have the financial clout to take up Merrill Lynch, creating a new global powerhouse in banking and finance, is a sign that the U. S. economy is doing what the U. S. economy has always done best, which is to overcome a succession of economic hurricanes and emerge as powerful and efficient as it has been in the past. The curse of other nations– Japan, Europe — has been their reluctance to make the adjustments and move on, letting failures fail.

That, in fact, is the greatest story in U. S. economic history. Since the Great Depression, it has never come close to having another great depression.

Now why would the left want to make things out to be worse than they actually are? Alright, I’ll spell it out: lefty politicians like Obama and Dion want to break you down so you lose faith in free-market capitalism, elected them, and give them the moral authority to enact widespread wealth redistribution and social engineering schemes – exactly the schemes that have stood in the way of further progress and success for a century now.

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4 Comments

Filed under Anti-Americanism, Leftist Duplicity, Politicians

4 responses to “Calm down! The American economy is not collapsing.

  1. Cara

    You are amazing. I’m an american conservative, and it’s really refreshing to read the things you write. Hearing from anybody who is not a socialist, or trying so hard to be a “hip liberal” that they lose their common sense is reassuring.

  2. Cara

    sorry, this is my actual email.

  3. ProudAndFree

    When you say free-market capitalism, is it fair to assume you include the health care sector? Private healthcare is something we hardly want – the standard for American health care is amazingly low for such a rich nation. What we need is to properly fund our own universal health care system, instead of mobilizing token military forces to the other end of the globe as a political gesture to help an ally.

    None of our markets are truly free – as you should well know, subsidies and exceptions abound. What we have done is abrogated much of our soverign control over our trade through various international trade apparatus. This has led to a lot of unfair trading, where we play by the rules but our so-called ally does not. We should be trying to diversify our trade as much as possible – this includes China as the worlds fastest growing economy – to reduce our exposure to American economic downturns.

    I suspect you have been so co-opted by the political dialogues of our southern neighbour that you fail to separate Canadian interests from American ones.

  4. Jason

    Care to revise your forecast?

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