Keller @ Large: What Is Really Going On With The Economy?
BOSTON (CBS) - We keep hearing that the economy is the overriding issue on the minds of voters, and politicians of both parties are eager to harness our anxiety about it toward their own ends.
But political spin aside, what is really going on with the economy?
Listen to Jon's commentary:
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I can't think of a better source on that than Federal Reserve Chairman Ben Bernanke.
He has served in that role under both Presidents Bush and Obama, and while his failure to foresee the 2008 crash and his support for bailing out the banks after the crash have drawn criticism, I don't know of a more educated, thoughtful economic analyst.
And here's what he told a House committee yesterday:
"The job market does remain far from normal. The unemployment rate remains elevated, long-term unemployment is still near record levels…. The fundamentals that support spending continue to be weak. Real household income and wealth were flat in 2011 and access to credit remains restricted from many potential borrowers. Consumer sentiment which dropped sharply last summer has since rebounded, but remains relatively low. In the housing sector, affordability has increased dramatically …[but] many potential buyers lack the down payment and credit history required to qualify for loans. Others are reluctant to buy a house now because of concerns about their income, employment prospects, and the future path of house prices."
I quote that at length because it is clear, reasonable, and speaks to our underlying economic problem – we don't have enough confidence in prospects for recovery to make that a self-fulfilling prophecy.
That's a lack of confidence in our public sector and our private sector, not to mention their foreign counterparts who are making such a mess of things.
Bottom line – the economy likely won't rebound strongly until we see signs of dynamic, effective leadership.
And I'm starting to wonder – is the baby-boom generation that's running the show globally right now capable of providing it?
You can listen to Keller At Large on WBZ News Radio every weekday at 7:55 a.m. and 12:25 p.m. You can also watch Jon on WBZ-TV News.
