With the economy as a constant presence in national headlines and a politically charged topic that news personalities continually reiterate, misinformation about the subject is a common, widespread occurrence.

Economists like Mike Walden, professor of economics, are working to shed some light on the misconceptions some have regarding the economy.

The national economy

Walden said although China is doing well, the U.S. economy prevails as an international leader. 

“We are still the biggest economy in the world,” Walden said. “We are still the biggest manufacturer in the world.”

Additionally, although the recession is often compared to the Great Depression of last century, Walden said we have already experienced the worst of today’s economic troubles. 

“Most of the economic storm has passed,” Walden said. “The viewpoint of most economists is that we are close to the bottom or coming out of it.”

Stephen Dalton, a senior in economics, said recessions have distinct stages.

“Well, recession is defined by two consecutive quarters of a decrease in [gross domestic product],” Dalton said. “Technically, we may already be out of the recession, but employment may be down for a while.”

North Carolina economy

While the national economy is a widespread issue and warrants concern in its own right, North Carolina’s financial woes also warrant investigation.

North Carolina does well when the nation’s doing well due to its cyclic economy, Walden said, but suffers more when the national economy is down.

“However, we may very well recover faster than the rest of the nation,” Walden said. 

Walden said North Carolina’s economy is intrinsically and necessarily linked to the national economy. 

“We are linked into the national economy very closely,” Walden said. “It’s all interwoven. It’s all intertwined. In a lot of ways, that’s good, but there’s nothing that our governor can do [to help our economy].”

Government bailouts

The News & Observer reported in “‘Rainy-day’ fund NC gov seized still has money” that Governor Perdue had spent all but $150 million of the $787 million “rainy day” fund set aside for national disasters and economic relief. The sum ensured the state could pay its bills as tax collections dwindled.

Walden said the funds served an important purpose.

“It is a reserve. Most economists would argue it is prudent for the state government to have something like that,” Walden said. “Economic disasters are equally as difficult to predict as natural disasters.”

Dalton said bailouts in general are an effective strategy for revitalizing an ailing economy.

“I agree with Obama and others on spending money to help the economy,” Dalton said. “I just don’t think they targeted the right areas.”

Walden sees the economic situation as a valuable lesson in economics. 

“I don’t think you could get any better lesson than now on how economics affects individual decisions,” Walden said.

However, Walden remains optimistic on the future progression of the economy.

“We’re headed for somewhat better days,” Walden said. “We should see financial growth in 2010.”