Capitalism is Mystifying

The economy is thriving, gas prices are falling ($1.99 here in the burbs), but worry not, pessimists of the world. The New York Times is here to ensure we feel as lousy as possible about all things in perpetuity . . . or at least until a Democrat is in the White House. Howard Kurtz lays it out:

Gregg Easterbrook's rule that All Economic News is Bad was effectively illustrated by yesterday's NYT front-pager, "Upbeat Signs Hold Cautions for the Future." The article notes several positive economic trends, including lower gas prices, but then warns darkly that

... as always with the United States economy, it is not quite that simple.

For every encouraging sign, there is an explanation. ...[snip]  Gasoline prices - the national average is now $2.15, according to the Energy Information Administration - have fallen because higher prices held down demand and Gulf Coast supplies have been slowly restored. [Emph. added.]

It's indeed deeply disturbing to learn that higher gas prices have held down demand, causing those prices to fall back to a level at which demand begins to rise again! It's almost as if some insidious law was at work--as prices rise, demand declines! As supply increases, prices fall! You can't win! ... P.S.: The price drop might be alarming if the decline in demand for gas reflected a general economic downturn. But that doesn't seem to be the case. What the NYT's Vikak Bajaj ominously describes is the market working exactly as it's supposed to, coupled with successful rebuilding efforts on the Gulf Coast. It appears to be "quite that simple." ... P.P.S.: Nor can I spot any "cautions for the future."

A New York Times reporter finds capitalism disturbing.

No. Really.

h/t Karol

Comments

[sonicfrog]

Though it is a certainty that the economy will sooner or later slow / decline, I don't recall haedlines like this during the Clinton administration. Does anyone remember all the pronouncements of "We've conquered the economic cycle". I'll bet you could dig up plenty of Krugman pieces fauning over the 2000 economy even as it was faltering.

[John]

The NYT article should have been titled "Every Silver Lining has a Cloud".

[Stephen]

Yes, Adam Smith was right? Surprise? No! So why did the Republicans, supposedly the party of free markets, decide to subsidize the oil industry? That's NOT free markets! I guess if your buddies are oilmen, and your sidekick is former CEO of Halliburton (with Billions of no-bid contracts), you reach out to your friends. And when people complain, GWB's Justice Department just averts its head.

[North Dallas Thirty]

Stephen, you've made this accusation here and elsewhere; like there, I simply ask you to provide links.

[alexana]

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