Tuesday, May 27, 2008

Emotional Reactions to Economics

When gasoline prices rise, people use less of a rare resource that, at least in the U.S., is commonly wasted. Moreover, gasoline is a poison wrecking the very air we breathe. People drive everywhere, causing politicians to pave over a huge percentage of our land and making people fat because they become accustomed to evading exercise. Yet, any rise in the price of gas is treated as a disaster.

The greatest expense for an individual by far is his house. Americans now have an astounding anti-inflationary gift that is putting money in their pockets - the cost of buying a home is rapidly declining. Everyone who wants to buy is significantly richer today than they were a year ago - the difference is far greater than any raise you could expect to get at work. Yet, every decline in the cost of housing is treated as a disaster.

Am I confused...or does the media interpretation of events represent the views of a particular influential minority?

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