The party’s over, scream the headlines. “Goodbye New Economy,” says the Washington Post. And a lot of the statistics look pretty bad: Manufacturing jobs are disappearing, the stock market is dropping.
G-D-P showed its slowest growth in five years, while wholesale prices jumped. On the other hand, unemployment remains encouragingly low, and in January, sales finally ticked up again. Leading the increase — automobile dealerships, department stores, and building material outlets. So what’s going on? Are we headed toward the dreaded r-word? Are we already there? It all might depend on how you see the proverbial glass.
It’s something of a self-fulfilling prophesy, this now-dropping consumer confidence. Some economists say if we’d just start buying with gusto, things will be OK. Chicken Little or Dr. Pangloss?
Guests:
Mark Zandi, chief economist, Economy.com
Willliam Cheney, chief economist for John Hancock Financial Services, Boston
Lynn Franco, director of the Consumer Research Center and The Conference Board, New York City.