Letting in the Sunshine

There’s more to the economy than just housing.


In his blog, CNBC’s Larry Kudlow asks: If things are so bad, why are they so good?

The last two quarters are the strongest [gross domestic product] in four years—just about 4 percent real growth. Consumer incomes are 4 percent ahead of last year, after taxes, after inflation. The booming export sector has cancelled out the recessionary housing sector.... The jobs numbers we got from ADP today suggest that we could get 125,000, maybe 150,000 jobs on Friday. That’s post-August, post-credit crunch, post-pessimism, post-doom-and-gloom, and post-bearishness. Look, I’m not saying we’re going to get 4 percent growth for the next four quarters. I acknowledge the housing recession. I acknowledge a lot more price-cutting is going to go on. I acknowledge pockets of credit freeze in the banking system and financial markets. But I also want to acknowledge the fact that a low-tax rate, low-inflation rate, low-interest rate economy is performing superbly. It’s shown itself to be extremely resilient.