Rising Optimism

A bunch of optimistic commentary and articles coming out recently:

“The Comeback Country: How America Pulled Itself Back From The Brink – And Why It’s Destined To Stay On Top”, Dan Gross, Newsweek, April 12

“The Power of Positive Thinking: Despite Pessimism, The Economy Is Showing Good Signs, And It Deserves Attention”, Robert Samuelson, Newsweek, April 12

The concerns aren’t unrealistic, especially considering America’s long-term problems (budget deficits, an aging society, weak state and local governments).  Still, the glumness may be overdone, just as the optimism of the Goldilocks Economy was overdone.  Public mood swings move the economy.  The irony of today’s pervasive pessimism is that, as people’s worst fears are not realized, it could begin to lift and give the economy a surprising forward shove.

“Why So Glum? Numbers Point To A Recovery”, Floyd Norris, The New York Times, April 9, A1

The American economy appears to be in a cyclical recovery that is gaining strength. Firms have begun to hire and consumer spending seems to be accelerating.

That is what usually happens after particularly sharp recessions, so it is surprising that many commentators, whether economists or politicians, seem to doubt that such a thing could possibly be happening.