The Economy: Real or Illusory?

Posted by Devon Shryock

...Be hopeful, because job creation is going to be the nation's top priority next year."

Dennis Jacobe, Ph.D.,
The current economic situation would be a lot easier to accept if it wasn't totally baffling. Companies that appeared to be an inch from bankruptcy a year ago now seem to be turning enormous profits. Wall Street is booming. Goldman Sachs is getting ready to pay out record bonuses.

But Main Street businesses are struggling, and many small businesses can't get the credit they need. Consumers aren't spending. Some companies are hiring, while others are cutting jobs, hours, and wages. Still, the U.S. Department of Labor just reported the smallest job loss since the recession began and a drop in the unemployment rate from 10.2% to 10.0%. It's a "through-the-looking-glass" sort of economy -- and when economics starts resembling fiction, there might be something wrong.

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