About a month ago, the media was doing its best to convince us all we were in a recession. Suddenly, everyone started hearing the phrase “inverted yield curve,” which was supposed to be some magical chart that showed us, definitively, that we’re headed for a recession.
It was almost like the media was rooting for a recession. In fact, it seemed like Democrats were rooting for a recession.
This is not the first time we’ve seen this movie.
When George W. Bush was President, the media and Democrats spent years trying to convince us all we were in a recession.
No one seemed to notice the oddity of a political party rooting for a recession. It seems to me that if you’re a political party, you should be rooting for a healthy economy, no matter whether you are the majority or minority party.
But we so often seem to see Democrats rooting against America.
Whether people believe it or not, recessions are largely up to the beliefs and behavior of the people. Recessions can be largely self-fulfilling prophecies. If people lose confidence and stop spending money. If they start holding onto their money and start protecting themselves, others sense it and do the same.
Before long, we can knock ourselves into a recession.
Some say trickle-down economics “doesn’t work,” but it’s not a question of whether or not it works. It’s not a theory. It’s a law of nature.
Trickle-down economics simply suggests that for every action, there’s a series of reactions.
When people stop spending, interest rates change. Saving changes. Spending changes. Investing changes.
If the media keeps telling us we’re in a recession, sooner or later, people start to behave accordingly. But unlike in the mid-2000’s, it seems like people are rejecting the message.
We just received another host of great economic news in the GDP and jobs reports. They can say it’s not going well, but the facts suggest otherwise.
If we don’t want to be in a recession, we don’t have to be. If we stay aggressive and act with confidence, we’ll have a healthy economy for a long time.