Wednesday, June 18, 2008

Why people gloomier than the economy?

So says a news analysis today:
"The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively."

Why is this so? People disproportionately let the price of gas and food, and the value of their homes, affect their economic outlook. Plus, they're worried about all the press on the financial crisis, and they've simply had it too good for two decades and don't remember what a real recession is like.

So this was probably a good thing to happen to us.

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