Economy Slowing Down? Not So Fast!

Some have argued that the Economy is starting to slow down after a long run of positive news. Don't jump to conclusions so fast, says the Wall Street Journal,

Yesterday's increase in the ISM manufacturing index should put to rest any fears that the economic expansion is hitting the wall. The widely followed measure rose to 62 in July, up from 61.1 in June, and has now remained above 60 for nine months in a row.

That's the longest such stretch since the 1980s, and is all the more notable because new orders continued to rise smartly in July even as inventories fell. In short, companies have been ramping up to meet what is genuine demand for goods.


All of this growth, meanwhile, is beginning to flow through to the federal Treasury in higher revenues. The White House budget office's mid-session review last week forecast $64 billion more in corporate and individual income tax receipts this fiscal year than it had predicted only last February. As John Kennedy said, a rising tide does lift all boats, even the federal government's.


Even if the Economy does start to slow down, we are currently not as bad as some people think. For example, the current unemployment numbers are at about the same level as they were when President Clinton was running for re-election. And that Economy didn't just go through 9/11 and two wars. All things considered, this Economy is doing very well.

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