Sunday, July 13, 2008

McCain breaks with economic adviser over 'whiners' remark -

McCain breaks with economic adviser over 'whiners' remark -

"He went on to say the U.S. is not in a recession, which is defined as two
consecutive quarters of negative growth, but many people seem to think so.
'You've heard of mental depression; this is a mental recession.'"

I don't understand the anger about this statement. It is true. If you think you have a solid job and you will get a raise, you spend money, you spend your credit. That spending creates jobs for the people who sell the things you buy, and transport it and often make it. When you think that you might lose your job, or that you will not be able to afford the things you need, you spend less money. That slow down in spending causes stores to cut back hours for workers and to lay people off. In this way, there is a very mental aspect to the economy.

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