This article takes an interesting take on the divide between the promising economic data showing the U.S. to be in good spot and the public opinion that states the opposite. In polls, most people answered that the country is on the wrong track and saw the economy as getting worse. Since the election of Trump those polls have switched. The question is, what is so wrong in people's economic lives to make them see the economy so poorly despite the promising statistics that have come out. The author provides some possible explanations to answer this. Possibly, the economy is too volatile with the rise of globalization and automation. High levels of inequality mean that many people are not feeling the effects of growth. Technological growth often focuses on private profit rather than on social costs.
Another explanation provided by The Economic Innovation Group, asserts that maybe the economy is not dynamic enough. The job market is less fluid and the creation of new companies has become concentrated into only a couple of regions in the country. Whatever the cause of this separation in statistics and opinion, one thing stick out- the data is not representative of the experiences of many Americans.
https://www.nytimes.com/2017/02/04/upshot/is-the-us-economy-too-dynamic-or-not-dynamic-enough.html?ref=economy
5 comments:
This is a very interesting and troubling trend, I have read a few articles recently that touch on this gap between reality and perception. I would be curious to understand more about the scope of the poll and its participants; I can imagine it would be helpful to narrow it down to the root of the problem. Do you think its possible that US residents are not as informed about the economy as they used to be? Or that they have gotten so used to checking the "wrong track" box, that they don't stop to consider the alternatives? Could it have something to do with the inflammatory nature of certain media outlets with regards to the economy and the future of the U.S.? Are there any other perception-altering variables that could be taken into account?
This was an interesting pick for an article. As an Economics student, I never quite realized the dichotomy. I think the whole argument about uncertain and volatile economy comes out of the recent recession and memories of the same, because obviously, numbers tell a different tale. While the article hasn't directly hinted at the recession, in many ways it points at people's skepticism, which I personally feel is born out of the fact that business cycles shift unexpectedly, and the time right before the 2008 crash was the same as the economy is looking today.
As an Economics major I see the economy differently than any other major would. Just the other day I was having a discussion with a friend who is against our economy and the way our economic system is set up. However, being an economist I've learned why we have certain regulations and I tried explaining some things to them but they were too skeptical. Therefore, I agree, sometimes this could be because people do not inform themselves correctly and follow what is trending online.
Yeah I agree with what Rachel discussed. I too wonder if people are less informed about whats happening in the economy. It seems that there are endless sources of information on the economy and it becomes very difficult to discern which information is accurate and which isn't. When information about the economy was limited to fewer sources (i.e. newspaper or magazine) and not too all this other sources of information we utilize today.
I agree with Rachel too, I think the way the news is presented and rhetoric used can give the people who subscribe to it a false sense of reality because statistics and forecasting data can be slightly misleading. Sometimes these polls can be taken from areas that probably only represent how one way of society thinks about this topic that's why further individual research is required in some cases.
Post a Comment