ABC: Is The Recession All in Your Head?

UPDATE: Meanwhile, Ed Cone criticizes criticism of over-the-top recession reporting. I’m unpersuaded. A recession is not a synonym for “a time when some people are hurting and there are worries about the economy,” and dismissing efforts to keep the language straight as a reliance on technical mumbo-jumbo seems pretty weak to me. As I’ve noted in the past, there’s plenty to worry about regarding the economy, and it’s likely that — despite all the talk about the “recession” we’ve allegedly been in for the past year or so despite positive economic growth — the press is missing economic news that’s worse than what it’s been reporting. They certainly weren’t ahead of the curve on Fannie Mae. Nonetheless, saying that it’s a recession because you’re worried about the economy is like demanding antibiotics because your child feels bad, without waiting for a diagnosis. People do it, but it’s not smart.

Plus, it’s mostly political. In the 1990s people were hurting — farmers in particular, though only Willie Nelson and Joel Dyer cared much — but all we heard about was how great the economy was, even though it was in a big bubble. Now, with numbers that are actually not that bad, we’re hearing about how dreadful the economy is right now. Not about problems that ought to be addressed, not about potential issues for the future, but about how we’re in a depression of Steinbeckian proportions. As I’ve suggested before, this is partly excusable on the grounds that journalism really is facing such a depression — their numbers are horrible — but I suspect that if President-Designate Barack Obama were already in office we wouldn’t be getting this kind of reporting.

ANOTHER UPDATE: Regarding the ABC story, reader Thomas Prewitt writes:

These lines at the end of the piece struck me:

SNOW: Which is not to say it’s not painful to go to the gas pump and pay those prices. Well, thank you so much — go ahead.

YARROW: I was going to say, and you know, gas prices and food prices in particular are causing people to be very emotional a bout it because every single day, they’re aware of difficulties.

This reminded me of Ronald Reagan saying that the American People should be required to pay their income taxes in one big check at the end of the year as this would remind them how much of their money they were sending to the government.

Yes, and it should be the day before Election Day . . .

MORE: Reader Terrence McMahon emails:

I would say that there are some segments of the overall economy that are in really bad shape. Housing and transportation definitely, and where I live, manufacturers of heavy steel items like automotive lifts and steel shipping containers. Mostly due to the price of fuel. However, unemployment is still low. In the rural area where I live, unemployment is well under the national average and right now, many manufacturers can’t hire enough skilled workers.

But try and remember back to the last real recession, how many people were standing in line to buy a $200 + cellphone with a two-year $100 per month contract attached? How about running out and buying a new TV, PC or laptop? How about a $50 videogame? I’m not going to say it didn’t happen, but…

And you may remember the last time there was a “gas shortage”, gas stations actually ran out of gas. I drive all over the Mid-West and South for my job, I pay anywhere upwards of $4 for gas, but I haven’t seen one “No Gas” sign. Think this is a bubble? I’ll bet you the house I paid too much for.

I don’t know if it’s a bubble, but it’s not the Great Depression. It’s not even the Carter Malaise yet, though if folks in Washington have their way that might change . . . .