The Official Animal of the United States Economy

There are a lot of cartoons and jokes dealing with the subject of Schrödinger's Cat ... the idea that if you place a cat and something that could kill the cat (for instance, a bowl of poisoned food) in a box and sealed it, you would not know if the cat was dead or alive until you opened the box; thus, until the box was opened, the cat was (in a weird sort of philosophical sense) both dead and alive.

I think this is a silly and useless concept, except in the field of economics.

Economics is where Schrödinger's feline would be perfectly at home, because every single economic statistic you can name is both good and bad, depending on whose interpretation you choose to accept.

Consider last week's announcement that employers added a staggering 517,000 jobs in January, driving the unemployment rate to a 53-year low of 3.4%. Good news, right? Lots of jobs out there for people looking for work! Wrong! It's also bad news, because it fuels inflation!

Consider rising wages ... that's good news for workers, right? Wrong! It's also bad news because employers raise prices to compensate for the additional wage expense, which fuels inflation and results in a net loss for workers as inflation outpaces the wage gains.

Consider that corporate profits are at an all-time high ... that's good news for the economy, right? Wrong! It's also bad news because those profits are being used for stock buybacks and CEO salaries and bonuses, not for lower prices for suffering consumers.

I nominate Schrödinger's Cat as the Official Animal of the United States Economy. It makes at least as much sense as bulls and bears.

Have a good day. More thoughts tomorrow, when we announce the Right-Cheek Ass Clown for February - be here for the festivities!

Bilbo