Business Pulse Magazine: Winter 2013

Page 13

The Smell of Fear By Dr. Dennis Murphy

This notorious (fiscal) cliff does not represent a jump to the death, but it no doubt will be disruptive. More disruptive than the current level of uncertainty? That, as 2013 began with a precarious Congressional showdown, remains unclear.

F

ranklin Roosevelt famously declared, in his most remarkable First Inaugural Address, “The only thing we have to fear is fear itself.” He went on to call it “…nameless, unreasoning, unjustified terror.” Today, approaching the presi-

dential inauguration day of 80 years later, we sense fear that has a name, several even—read on, a fear that is neither unreasoning nor unjustified. We have had a little respite from the emotion since the demise of Lehman Brothers, Bear-Stearns, Washington Mutual, and so on, but like the steady drip, drip, drip – it is back. Fear itself. The U.S. continues to muddle along, making little progress against

stagnant economic conditions that reporters insist on calling a recovery. Every spark of good news is soon doused with a pail of cold bad news. A look ahead definitely begs rose-colored glasses. • Unemployment is down – if we don’t look too closely at the workers that recently fell out of the numbers. We are far from gaining back the number of jobs lost. And if you plan on stopping by Sears to buy a new battery for the car on your way to Semiahmoo, well forget about it! EDITOR’S NOTE: Sears in Bellingham and the Semiahmoo Hotel in Blaine closed, costing a combined 316 jobs in Whatcom County. Read our 12-for-’12 retrospective on pp. 66. • Growth rates of the U.S. economy have been anemic. An upward revision late last year showed growth was accounted for by inventory accumulation

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