Economic Growth

Contrary to what one might assume, financial success actually undermines the chances for happiness. Or so says psychology professor Paul Wachtel. Wachtel, a professor at City College in New York and author of The Poverty of Affluence, spoke about material gains and the search for happiness to open the spring lecture series at Widener University on Monday night. "The truth is, if we stop trying to achieve economic growth, we'll enjoy life more," he said. "Our happiness depends on relationships, friends and community, not material gain.

What Ronald Reagan has done is incorporate our past into a new perspective on the American future, of which he has given us the outlines.. . .But the outlines are clear enough - a rediscovery of the importance of individual self-reliance, without which programs incorporating political compassion end up in perpetual frustration; a renewed emphasis on those moral values that bind individuals to their families and communities and that give the ultimate meaning...

Federal Reserve Bank of Philadelphia President Charles Plosser said he didn't support the central bank's decision last month to extend the time frame for low rates at least through late 2014. "Economic conditions have modestly improved since our December meeting, especially on the employment front," Plosser said today in a speech to the Main Line Chamber of Commerce in Gladwyne. "I saw little justification to further ease monetary policy. " The Federal Open Market Committee on Jan. 25 extended its commitment to keep rates low by at least 18 months as moderate rates of economic growth have failed to reduce unemployment below 8.5 percent since the 18-month recession ended in June 2009.

The day after Republicans signed their "Contract with America," Democrats bought commercial time on radio stations around the country, deriding the document and calling it a contract "on" America. Among the criticisms was that Republicans want to revive "Reaganomics. " President Clinton claims a Republican takeover of the House and Senate in next month's elections would mean that the crime bill would not be funded and big deficits would return. The fact that he has mortgaged the nation through the purchase of short-term, low-interest bonds, which could increase the deficit when they come due at higher interest rates, is never mentioned.

Fixed mortgage rates plunged on slower-than-expected economic growth in the second quarter, leaving the average 30-year fixed rate this week at 6.02 percent, the lowest since April 14. Also according to Bankrate. com's weekly national survey of large lenders, the 15-year fixed rate mortgage, popular for refinancing, fell from 5.59 percent to 5.42 percent. The average rate for the jumbo 30-year fixed rate mortgage dropped from 6.32 percent to 6.22 percent, and the average one-year adjustable rate mortgage declined from 4.43 percent to 4.35 percent.

Recent evidence that Philadelphia is pulling itself out of an economic rut got some backing today in a Census Bureau report. The study of county business patterns indicates that Philadelphia gained 8,500 jobs between March 1997 and March 1998 for a total of 586,689 employees. That figure excludes farm workers and most government and self-employed workers. During that period, the city lost almost 500 business establishments and hadn't yet regained the level of jobs it had in 1993, the report said.

WASHINGTON BUSH GOING TO RIO PARLEY President Bush will attend the U.N.-sponsored Earth Summit next month in Brazil, prepared to sign a treaty that addresses global warming but does not commit the United States to specific pollution reductions. Bush said yesterday he is convinced that environmental problems, including global warming, can be confronted without sacrificing jobs and economic growth, and added, "I will be taking (that) message to Rio. " "Protecting the environment and encouraging economic growth in fact . . . must go hand in hand," said Bush.

President Reagan's chief economic adviser warned yesterday that the Federal Reserve could jeopardize an otherwise upbeat economic scenario if it continues its tight money policies. The warning from chief White House economic adviser Beryl Sprinkel came just one week before the Federal Reserve Board's key policymaking body, the Federal Open Market Committee, was scheduled to meet to set the course of monetary policy for the rest of the year. Sprinkel, chairman of the Council of Economic Advisers, told a congressional panel that rate tightening would harm economic growth.

GONE ARE THOSE SALAD DAYS Great Britain's centrist Social and Liberal Democrat (SLD) Party adopted the shorter working title of "Democrats" on Monday at an inaugural conference designed to generate political momentum. After a divisive debate, the party - formed nine months ago by a merger of the Social Democratic and Liberal Parties - voted overwhelmingly for the one- word name. The decision effectively relegated the title "Liberal" to the reference books after a 120-year history.

The stock market fell 170 points one day on rumors that IBM was going to hire someone. The next day, it rose 100 points on news that the job fell through. I don't always understand the stock market. And by "don't always" I mean "never. " I was taught in Economics 101 that the stock market, in a general way, reflected prosperity. If business is good - companies making money, people working, the economy growing - the market is up. If not, it's down. This, apparently, is one of those fictions you learn in school that are of no use in the real world, like "Honesty is the best policy.