The watershed year was 1989. That s the year the stage was set for the record economic boom that followed. The next several years showed a sharp drop in defense spending, a decline in commercial credit, lower interest rates, and the beginnings of the imprint that the technology information revolution would have on our economy. From those four events the following evolved. Higher stock prices became the medium of exchange for record numbers of acquisitions and mergers.
Consumer confidence is at record levels.
The effect of these events is that although defense spending, commercial borrowing, and interest rates have turned up, the profitable stock market, the numbers of people employed, and consumer spending have been enough to offset those increases and keep the economy going. Consumer spending and the strong stock market are the current lynch pins to our strong economy. Another factor influencing our economy are the potential buyers for American goods and services in foreign markets. The difficulty is getting a handle on what s happening. One day Japan looks great, the next day it s on the verge of collapse.