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Consumer confidence at 3 year high


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What’s that, consumer confidence at 3 year high? Just last week USA Today released a poll showing the majority of Americans had a negative impression of the economy. Consumer confidence measures the health of the economy by evaluating the feelings of the very consumers who bolster that economy through daily use of goods and services.

According to the Conference Board Consumer Research Center, the latest figure reflects growing optimism about the overall state of the US economy and the job market in particular. How can this be? Only last Thursday, we were told that the general perception amongst the American public was such that the economy was stagnant and a prevailing fear about the future was dominant. Some 60% of Americans said the economy was faltering and nearly just as many believed the economy was getting worse. Now we hear that consumer confidence is the highest it has been in nearly 4 years?

Obviously these two reports on the mood of the country can’t be reconciled. On many occasions we have discussed how the media uses polls to stir, rather than measure, public opinion. This can be accomplished by asking leading questions or setting up a scenario, which leads to the desired outcome, perhaps this was the strategy in USA Today’s most recent, “who hates Bush today” poll. Perhaps with the next poll results USA Today will release the questions as well.

The simple fact of the matter is polls can be manipulated. Thus a more accurate measure of the US economy should be the incontrovertible facts, which clearly demonstrate our ongoing success. With the exception of last quarter, which we suspect will be revised upwards once final counts are made, the US economy has consistently grown at a rate at or near 4%. A record number of jobs have been created, while businesses continue to expand.

Only those seeking the never-ending government handout harbor an ever-negative view of the economy. People, who have squandered opportunities or failed to act, should feel negative as time has and will continue to pass by the sedentary or inert, as well it should be.
http://www.businessweek.com/ap/financialnews/D8FFOBF00.htm?campaign_id=apn_home_down&chan=db
http://www.usatoday.com/news/washington/2006-01-26-bush-sotu-cover_x.htm
http://www.thephalanx.com/2006/01/majority-america-on-wrong-track.html


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