This economy

Although we hear a lot of mumbling about “this economy” (most of the people we hang out with are Democrats), it’s been a pretty good summer for my husband. He’s sold 5 paintings and 22 prints; we have no way to judge or compare with others since he’s not a full time artist--just a hobbiest. Our neighbor here at Lakeside is an auctioneer. He says he’s had a fabulous summer. “There’s money out there,” is a paraphrase that came through our porch screen. One item (consignment auction) where the base price was $800, went for $37,000. Tibetan 17th century must be in big demand. A number of neighbors are retired teachers or university faculty with far more in STRS than I have, plus they all seem to "consult" or "substitute," or "mentor," and I know it isn't about the money.

One thing I haven’t seen addressed in the “this economy” poor-mouth, media stories is how we retirees are spending our money. Remember, the boomers are now 60. They have all their “wants and needs” for big ticket consumer goods, and so they aren’t buying homes, cars and refrigerators. With a demographic that big, even without a mortgage problem brought on by shaky loan methods of zero money down and flipping houses for investments, I would think there would be a softening of the economy.

Also, many retirees know how to tighten their belts--we had years of experience when we were younger. But like us, many retirees decided to see a bit of the world before checking into the retirement home. The first 10 years of our marriage, we had no vacations at all. For the next 30 years, we primarily vacationed at Lakeside, my mother’s farm, or visited relatives while younger families went into debt for Disney World, ski vacations, or a sandy beach on either coast. However, since I retired we’ve been on an Alaskan cruise, tours to Germany and Austria, Ireland, Italy, trips to Finland and Russia, a 16 day Amtrak trip, and several architectural bus tours through the U.S. In the spring we’re going to the Holy Land and my husband is signed up for his third mission trip to Haiti (participants pay their own way). Yes, some of that money has stayed in the United States to be spread around the travel, leisure and service industries, but an awful lot has traveled out of the country starting with foreign airlines, and going to foreign hotels and restaurants and tourist sites. The U.S. exports a lot of its travel dollars.

Also, as usual, there’s a disconnect between how people see their own lives, and the general condition of others--most Americans are optimistic about their own situation, but not others’:

“But here's the bad news for the dour Democrats in Denver -- most Americans don't share their economic pessimism. That's the finding of public opinion expert Karlyn Bowman of the American Enterprise Institute. "Most Americans are feeling pretty good about their jobs and their personal lives," she says after investigating the fine details of recent polls. Her report goes right to Mr. Gramm's concern about the gap between actual economic performance and the dreary negativity of politicians and the media.

She finds that 76% of Americans say they are actually optimistic about the direction of their own lives and their personal economic situations -- even though only 18% are optimistic about the country. That's the big disconnect. "These numbers haven't changed much over time," Ms. Bowman tells me. Political Diary