Pessimistic Bias

“Nearly three-quarters of all Americans think the economy is in a recession, according to a national poll released Monday,” reports CNN.

The facts on the ground are quite different from what people think. GDP grew last quarter, therefore we are not in a recession. A recession is defined as two consecutive quarters of declining GDP.

Growth has certainly slowed recently. There’s a chance it could even go negative this quarter. Still, odds are that this year’s GDP will be higher than last year’s. By the way, that would qualify for an all-time record high.

Things could be better, for sure. Still, it is a pity that so many people systematically think things are worse than they are.

Comments are closed.