Prices are higher, and you should be happy about it?

Posted on May 21, 2011


Image by Roberto Maldeno via Flickr

My vote for the most ridiculous spin story of the day:

SALT LAKE CITY — While prices at the pump are becoming painful, the cost of a lot of other items we regularly buy has gone up in the last year as well. But some economists say this could actually be a good thing.

“Typically when you see an increase in price, you’re also seeing improvements in employment, you’re seeing improvements in the number of products that are being introduced, you’re seeing an investment in research and development,” explained Randy Shumway, CEO of The Cicero Group.

In other words, slightly higher prices are an indication that people are spending again. It shows the economic engine is moving forward.

So go ahead and smile when you’re paying $4 plus per gallon for gas and you have to decide whether to eat or pay your mortgage.  Those higher prices mean the economy is improving  and things are getting better! Don’t you feel better now?

Posted in: Economy