No wonder John McCain thinks the economy is just doing fine. Yesterday, one of his key economic advisors Donald Luskin wrote a long opinion piece in the Washington Post entitled, “Quit Doling Out That Bad Economy Line”, in which he accused Obama of exaggerating economic problems for political purposes. What perfect timing!If I was a client of Luskin’s firm Trend Macrolytics LLC,I might be looking for advice on the trends somewhere else. Here are a few gems from Luskin.
There have been 11 recessions since the Great Depression. And we’re nowhere close to being in the 12th one now. This isn’t just a matter of opinion.
This would suggest that anyone who says we’re in a recession, or heading into one — especially the worst one since the Great Depression — is making up his own private definition of “recession.” And probably for his own political purposes.
McCain campaign adviser and former U.S. senator Phil Gramm was right in July when he said that our current state “is a mental recession.” Maybe he was out of line when he added that the United States has become “a nation of whiners.” But when it comes to the economy, we have surely become a nation of exaggerators.
Whatever the political outcome this year, hopefully this will prove to be yet another instance of that iron law of economics and markets: The sentiment of the majority is always wrong at key turning points. And the majority is plenty pessimistic right now. That suggests that we’re on the brink not of recession, but of accelerating prosperity.
That McCain surrounds himself with clowns like Luskin and Phil “mental recession” Gramm is truly scary.