05/26/2002 Archived Entry: "Economic Well-Being, the stocks, and the polls"

A look at the polls earlier had me wondering: amidst the stock indexes still falling, and the general insecurity that the government fosters, why do politicians approval ratings remain high, and here's why:

The housing market has been one of the heroes of the recession.

The strong housing market gave homeowners a safe-haven during the economic storm. For instance, the national average price of an existing single-family home is now $192,400. A year ago, the average was $179,500. For new single-family homes, the national average price is now $226,800, while a year ago, it was $205,500. The increases have created a sense of economic security, the so-called wealth effect. "Housing prices go up, people feel better," said Cary Leahy, economist for Deutsche Bank in New York. "They feel better; they spend more."

"His economic plan could fit on the back of a shampoo bottle. 'Cut taxes, increase spending, borrow, repeat."
Sen. Joe Lieberman, on President Bush