Over at NationalPolls.com, I saw this table that shows Obama’s approval rating on the economy jumping in January.
|Obama’s approval rating on the economy|
In fact.. this is something that I’d been hearing quite a bit as of late — that the economy is getting better. But someone over at the WSJ did a study that found quite the opposite. They admit that our risks for further downturn is minimal but they also admit that we have no real upside either.
Here is the synopsis of their well put together article.
- "Muddling through is the best term" … We are neither going up nor down.
- "This is less impressive than it looks" – Final sales only grew by 0.8%.
- Consumer spending remains but no real wage growth. Spending is coming in the form of debt and savings.
- Services consumer spending (47% of GDP) rose only 0.2%.
- Very little growth expected in 2012 as consumers are worried about debt, job security, housing market.
The media is blasting us with reports that the economy is improving.
- Forbes: US Economy Slow, But Growing
- Concord Monitor: Economy gains as businesses retain workers, spend more
- South Bend Tribune: Economy picking up
The most important nugget of information I took from this was that the media is overstating the improvement in the economy. And while consumer spending remains, it cannot last without real wage growth. People cannot continue to spend money out of their savings and out of debt forever without a halt.