One topic that economists should not neglect to explain and illustrate is the self-corrective mechanism of the economy below capacity. The further the economy is down it bounces back more easily.
The general public does not sufficiently distinguish short run fluctuations and long run growth (or decline).
After all, the economy will recover out of its own sooner or later. The left plans to credit the stimulus, regardless of evidence.
A recession is like a cold. Don’t panic, don’t buy the snake oil, don’t make matters worse (and don’t allow politicians to exploit the crisis to push through their agenda). Wait and the body will recover, as theory and all historical evidence suggests.
Ps.
The non-partisanship worked great on TV, especially against a partisan opponent.
One topic that economists should not neglect to explain and illustrate is the self-corrective mechanism of the economy below capacity. The further the economy is down it bounces back more easily.
ReplyDeleteThe general public does not sufficiently distinguish short run fluctuations and long run growth (or decline).
After all, the economy will recover out of its own sooner or later. The left plans to credit the stimulus, regardless of evidence.
A recession is like a cold. Don’t panic, don’t buy the snake oil, don’t make matters worse (and don’t allow politicians to exploit the crisis to push through their agenda). Wait and the body will recover, as theory and all historical evidence suggests.
Ps.
The non-partisanship worked great on TV, especially against a partisan opponent.