Freedom's Fidelity

Monday, December 05, 2005

Too Funny Not to Link

True, it wasn't meant to be funny, but Mickey Kaus pointed this out last Friday and I was still chuckling about it over the weekend.

The New York Times runs this headline for an article on the improving economy, Upbeat Signs Hold Cautions for the Future:

Gasoline is cheaper than it was before Hurricane Katrina slammed into New Orleans. Consumer confidence jumped last month and new- home sales hit a record. The stock market has been rising. Even the nation's beleaguered factories seem headed for a happy holiday season.

By most measures, the economy appears to be doing fine. No, scratch that, it appears to be booming.

But as always with the United States economy, it is not quite that simple.

For every encouraging sign, there is an explanation. Consumer confidence is bouncing back from what were arguably some of its worst readings in years. Gasoline prices - the national average is now $2.15, according to the Energy Information Administration - have fallen because higher prices held down demand and Gulf Coast supplies have been slowly restored.

Got that? Don't get too excited about falling prices. The only reason that gasoline prices have fallen is because high prices held down demand, and supplies were increased. In other words, market forces worked. Shocking, I know. Apparently it is news to the yokels at the New York Times that the free market does actually operate as advertised.

Whodathunkit? (Besides Adam Smith back in 1776)

posted by Paul  permalink | |