Blogs > Frye on the News

Keeping his eye on the news and offering commentaries and insights on what is happening in Oakland County, around the world, on the tube and in the news.

Wednesday, January 30, 2013

Nevermind, or News we didn't see coming

Based on all the good news with various specific economic updates, factors that include manufacturing, housing prices and sales, home building, and, especially, auto sales, a bit of wishful thinking and downright optimism went into thoughts of an improving economic recovery.

Perhaps not so. Sure, bad news lingered, too: The trade deficit and lingering unemployment levels were strongest but also lackluster Christmas sales and slumping consumer confidence.

Now comes the big news, highly symbolic, yes, but also frightening, the economy shrunk for the first time in almost four years. A big oops, seeing how confidence so drives the markets. But with spending cuts promised to help ease the growing deficit, we as a nation must endure some lumps to pay for our past sins, or really spending. It's like a family (or a college student) with a credit card. Eventually, you got to pay, and it's never easy.

You can't have a recession, or in this case, a double dip recession without the first quarter of economic contraction. So what happens next? Taxes ticked upward, more spending cuts are promised and unemployment continues to impact the entire nation. Furthermore, and I think this was perhaps the biggest reason for the decline in what should have been an artificial boost the economy, the fourth-quarter shopping season, our leaders have shown no indication of working together to repair the economy.

The nation seemingly has a complete lack of confidence in our elected leaders, from the president to every member of the Senate and the House. And that's not improving any time soon. At least, there's not a major fight yet over immigration. Coming together to work on anything, forget the fight over gun violence, would help repair the damage they've caused.

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