The Best of Times and the Worst of Times

What the hell is going on with the economy?

Boston was just named one of the 10 least affordable cities to reside. This doesn't mean this is a bad place to live considering most of the other cities on the expensive list (NYC, San Francisco) are a lot more appealing than the affordable cities (New London, Harrisburg). Nevertheless, that doesn't ease Bostonist's fears that the economy hasn't been too sharp over the past few years. The national forecasts are just plain gloomy, with most indicators showing that the economy is set to move no where but down. And on the back of terrible indicators to the national economy, Bostonist opened today's Metro to read an article stating that the "state hits lowest jobless rate in 3 years," with the quoted statement that "This is a convincing sign that the recovery has taken strong hold in the [state's] economy." Doubtful.

The jobs report may have been positive, with April's unemployment numbers actually dropping to the lowest level since December of 2001, but the numbers pulled off the Bureau of Labor Statistics website also show about 50,000 fewer workers in the work force than in 2001, which might indicate more people unemployed that have just given up looking for work.

Massachusetts' best areas of growth have been Healthcare, Leisure and Hospitality, and Real Estate. With white hot housing prices adding to the wealth of the greater Boston area, it also adds to the extremely unaffordable prices for first-time home buyers driving these buyers and developers to areas like East Boston and Dorchester, areas not known for their property value or safe living conditions. And with Greenspan's policy of trying to push up interest rates not seemingly working as mortgage rates continue to drop, it's a wonder if there is hope for the real estate Market continuing the current pace its on.

Meanwhile, companies and drivers will be getting a little relief with a large drop of 6 cents on gas could spell relief for a lot of commuters and manufactures in the Bay State (unless you commute to Lynn where budget is causing over 100 teaching jobs to be lost). No one is quiet sure what is happening. If the economy was a blackjack hand, it would be a 13. There is no right answer or indication on which direction it's turning, and in fact the only thing we can be sure of is that it can't stay like this. The 90's had a roaring boom where the only question was when would it slow down? Early in the 2000's the question was when would the drop in stocks and earnings end? Right now, we are at neither a peak nor a trough and Bostonist's guess is as good as yours.

Contributed by Matthew Nelson / Image courtesy of Wikimedia