Talking Down the Economy

There are numerous factors that impact the U.S. economy, but one has been singled out by economists, media titans and leading politicians as a pervasive underlying force: The public mindset. This key dynamic is significantly influenced by people and institutions who have the public's ear. Though rarely discussed in the current news frenzy surrounding the economy, recent history sheds a great deal of light on the matter.

In early 2001 as Bill Clinton left and George Bush entered the Oval Office, GDP growth had sunk into negative territory,[1] the dot.com...