Good things are happening in the economy

David Snyder

Those of us who follow economic news daily, are always looking for some good news. Two weeks ago, I talked about the sequester, and how it would hopefully turn things around. It is taking a little longer than expected to implement, but good things are happening. The stock market, which typically overreacts, is really planning on the cuts to continue. I hope that their optimism comes to fruition.

In recent days, I have seen two other sparks of good news. First, the president presented a budget. That in itself is an accomplishment.

His budget shows a plan to get back to fiscal responsibility. I dont believe that the term balanced budget is there, but it does show intent to close the gap between spending and tax revenue. From what I have heard, neither Democratsnor Republicans are very enthused by his budget. It still contains way too much insane spending, but at least he is talking about entitlement reform. The plan is to raise more taxes. This isnt going to go over too well with many Republicans.

Lets hope, that after both sides debate the budget, we get something that can point towards a balanced budget. It needs to be done without stealing more money from those who produce. Giveaways will only lead to more people addicted to giveaways. Pulling revenue away form those who produce our core products will hurt what little growth we have.

The second piece of good news, is gas prices. It looked like prices were heading for $4, just a month ago. Now it looks like prices are retreating. I just filled up for $3.32 a gallon. Forecasters are predicting that we will not see any price gains through summer. Im not quite sure what they are basing this on, but Ill go with it until evidence proves otherwise.

Warm weather doesnt hurt either. I always look forward to this time of the year. Yes, the flowers and trees are very pretty, but as an economist, Im more happy about not paying for heat nor air conditioning. It seems as if we too often go from cold days to hot days. Lets hope that Mother Nature can slide us a few weeks of 70 degree high temperatures.

If Congress can slowly come around, see how cuts are working, and have the vision for how great our economy can be, maybe we will get to see some real changes. If they cut all the garbage out of our federal budget, we will get back to where we were, just six years ago.

David Paul Snyder is the flight training manager fro two Israeli business jets. He is a former pilot for PanAm and is the former chairman of the Bucks County Airport Authority.

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