Home » OPINION » Columns » MBJ Editorial
What bad economy?

MBJ Editorial

The study of economics can be precisely inexact. Despite advances in data collection, computer modeling and statistical analysis, divining the minds of millions of consumers remains difficult.

Will the American economy fall, or is it already falling, victim to a self-fulfilling bad-economy prophecy? Has speculation and overanalysis in the media exacerbated a situation that isn’t really that bad?

It, of course, depends upon perspective.

Reports indicate that Americans were back in the malls and restaurants in January, spending money and snapping up post-holiday deals after a disappointing December. Good news for retailers. However, there are troubling economic issues: the U.S. trade deficit for 2000 rose to a record $369.7 billion; dot-coms continue layoffs; the nation is dealing with energy issues from California to the East Coast — energy bills are also setting records.

But are these situations and others enough to trigger a recession? Only if consumers and businesses stop spending and investing. The U.S. economy is in a slowdown, but it should be, at worst, uncomfortable — not catastrophic.

We agree with the economists predicting moderate growth for the U.S. economy. And while “mild” or “moderate” growth isn’t as much fun as a 20% or 30% ROI, there should still be plenty of returns.

The sky is not falling.

Editor`s note: Last week’s front page Mardi Gras photo was published in error. The Mississippi Business Journal regrets any offense readers and advertisers may have taken.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Staff Writer

Leave a Reply

Your email address will not be published. Required fields are marked *

*