The state of the US economy

How are you doing? Let's look at the state of the U.S. economy. How's inflation? Latest figures are 3.2%. 40 years ago, under Reagan it was 3.9%. How about unemployment? Currently 3.9%. Forty years ago, 8.3%. The most often quoted measure of stock market performance, the DJIA is near record highs.

But wait, how about gas prices? Currently, they are around $3 a gallon. US average mpg is 36, so about 8 cents a mile. In 1983, gas was $1.81. Average mileage was 27 mpg. Cost per mile was almost 7 cents a mile. Of course in 1983, average wage in the U.S. was about $14,000, compared to $53,490 in 2023. You can buy a lot more $3 a gallon gas with $53,000 than you could buy $1.81 gas on an income of $14,000.

Don't like 1983 for comparison? Pick any year (aside from the COVID-19 period) and 2023 looks pretty good.

How about those high interest rates? Current average new mortgage rate in the US is 7.9%. In 1983 it was 13.24%. Sure they are higher than a few years ago, but a lot better than 40 years ago. And they'll likely drop in the next year or so.

So maybe Bidenomics is not so bad after all.

One final thought. The Economist is probably the most highly regarded news/economics/politics publication in the world. It recently declared "The biggest danger the world faces in 2024 is if former President Donald Trump is elected to a second term." Facts do matter.

PETER GORDON, Cape Girardeau