I am reprinting this blog of mine I did on another website Nov. 30, 2008, and I thought it was appropriate to share here with a bit of an update.

People are often confused by me; just when you think you know me, I can surprise you. The fact that I am a liberal while being more fiscally conservative may surprise many. I also like to see things from both sides of the equation, which is handy considering I teach global economics. So, let me start by telling you that I no longer watch the news on television. I do, however, read newspapers from all over the world every day, and there is a very good reason – television is for drama.

Television news is overly dramatic for a reason. Now, I am not saying there is no economic difficulty before us, but I am saying that broadcast news has a singular responsibility to get ratings and not to inform you. That, my friends, is lesson number one.
Lesson number two? Be wary of what those around you say. Remember the old adage about screaming fire in a theater? There is a good reason it is illegal to do so, and it should similarly be illegal for network news to overly dramatize the world economic situation. Again, I am not saying we don’t have a situation, because we do, but I remind everyone that this is a cycle. It is only a little scarier because we are being told to be scared.

Economics, as a whole, is a confidence game. If Warren Buffet told us things would be all better in six months, everyone would start down that road the minute he stopped talking. When the pundits, news stations and even friends cry disaster, guess what – disaster looms.

Yes, Mervyn’s (is going) went out of business. They couldn’t compete anymore. Yes, Circuit City (is going) went under. Best Buy out-advertised, out-marketed and just simply outdid them. Yes, GM, Ford and Chrysler are headed down the drain (update – Chrysler just claimed bankruptcy), but perhaps they shouldn’t have been making Hummers when Toyota was selling the Prius like hotcakes. Not that I am a fan of the Prius as I think it is more hype than reality. It truly does not give us anything better for the environment than a BMW. And, yes, many banks have gone under. We all know the golden rule of not buying what you can’t afford and, similarly, not loaning what you are pretty sure will never be paid back.

There are many businesses starting up now than there have been in many years. People are no longer complacent with bad business. They are starting to think for themselves, which is one of the principles this country was founded upon.

So, I conclude with a few important questions. When do bad management and bad business decisions become the responsibility of a nation of taxpayers? When does it become crucial to put common sense first in lieu of high television ratings? And, perhaps more importantly, when do we stop blaming the other guy for our failures, suck it up and start over, just like our forefathers?

Reprinted from my blog at a national travel magazine