Economic Perception v Reality

Yesterday we talked on the difference in perception vs reality when it came to the Cult of Personality.  Today we will focus more specifically on the economy.

We'll start with a short story that's 100% true..

When yours truly was much younger, there was a store that opened up at the local mall that was literally called "Everything 80% Off".   And being that I was young and quite naive then, it was exciting the thought of a store with such discounts..

So I enter for the first time with $20 looking to get something amazing and in the games section I see a Trivial Pursuit game marked with a sticker price of $180 and a 500 piece jigsaw puzzle box for $60.

My eyes widened so I go to the man behind the register to ask if the prices are correct.  With broken English the reply was "Most correct but don't forget that's before special discount"

Yes.. with discount, the game was $36; puzzle cost $12..  Same price or higher than elsewhere..

I never stepped foot in that store again yet do remember it closing within a very short time..

Perception/Reality.

The economy is in bad shape.  It really shouldn't even be a debate point but of course some get paid in media to do just that or to put rosy spins on things so the topic is still discussed..

The other day we were reading an article summarizing main points of a book recently released entitled "The Myth of America's Decline".  We are sure if it were a work of fiction, it would be a mighty entertaining read..

But no.. it was meant as nonfiction and these types of books appeal to the academics and financial elite because it reaffirms their narrow worldview that the stock market is rising, profits are on the up and thus, to dare claim the economy is weak or floundering is preposterous.

And let's face it.. its not working everyday Joe's and Joannes' who are going to rush onto Amazon.com to buy a copy so the author doesn't even have to pretend to care about reality.

Briefly, the gist of the book was that we were simply in another financial cycle..   Been there.. done that.   Came out of those others stronger than before.. we have now..

There's also a pro-immigrant argument but not made for kind or altruistic intent.  No, see immigrant labor is very very cheap and the cheaper the labor, the bigger the corporate profit and that's good for America..

We mention all this not to give some high-school quality book review but to explain perception vs reality in clearer context.  

There is a battle going on.. In one corner, the media and pretty much those in charge giving the impression that things are better or getting better or those in power are sincerely trying to make things better..

 And in the other corner...  your Brain..  your Eyes and Ears.  Your true sincere day to day life hardships and struggles telling you the Real Deal.

Just because most Americans aren't living in their cars and getting their meals in soup kitchens doesn't mean there isn't genuine financial hardship for a large percentage of people..

Its just hard for the media to cover things honestly then show commercials for Audi and Chanel.

Here's another perception vs reality example.. General Motors.

Perception:  The 2008 bailout saved GM and in the process American jobs and thus was a great success story of the Recession..

Fact:  Taxpayers lost over $10 Billion dollars and did not save one single penny in discounts to purchase GM vehicles.   Rather the opposite.. prices were raised.

Another Fact care of Bloomberg, Dec 17, 2008:  "General Motors Corp., seeking a U.S. government bailout to avoid bankruptcy, opened its eighth vehicle plant in China...  The Detroit-based automaker expects to sell as many as 1.2 million vehicles in China next year (2009)"

And according to CBS News, May 8, 2013: " General Motors Co. said Wednesday its main Chinese joint venture has received government approval to build a Cadillac factory as part of GM's efforts to expand its share of China's luxury auto market.

The $150 million facility employs 700 people and will have an annual production capacity of 40,000 vehicles, according to GM. It said 20 percent of production will be exported to Thailand and the Philippines, with the rest sold in Indonesia."

So US taxpayers have been paying for GM's expansion overseas and for the creation of Chinese jobs under the ruse it would protect US workers.

Of course most people know nothing of this but it was mentioned today that GM will have its first female CEO starting in January so that ought to make people feel Proud as if we're progressing as a nation.

Used to be only WASPs were crooked, dishonest and/or unethical leaders of big corporations and Western nations..  Now in late 2013 we can all celebrate those exact same kind of people in charge of things but now its more sexually, racially and ethnically diverse.

The Perception/Reality game is played annually with holiday shopping..  Every year its trumpeted that shopping is on the up and sales are terrific..

We all know why this is done and we do understand the relationship all too well between media and its advertisers..

We also know the reality..

Every Christmas season the majority of 'sales' we find are utter BS..  Just playing with numbers and coupons..

Personally, we refuse to involve ourselves in BOGO sales (Buy One, Get One..)  We especially refuse the Buy One, Get One 50% off promos.    In simple language its 25% off each item but must buy two..

I received a big savings coupon in the mail the other week from Kohl's..  I get to save 20% while guest passes allowed friends or family to save 25%..   WTF!!  I don't like my friends or family That much to save them an extra 5%..

Besides Kohl's sent me a 30% coupon only 4 weeks prior..

All businesses play the perception/reality game..

So in this country one is free to perceive life as they wish and with the right mindset and the properly fitted horse blinders and earbuds, you can create your own special-fitted rose-colored glasses..

And while it'd be really nice, we at A&G just can't.

And thus we soldier on.