This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
2/15/2005
Economists raise 2005 GDP forecast
Analysts have raised their forecasts for economic growth to 3.6 percent this year. It is good news that America’s GDP is growing. I get the impression that many Americans are worried that too many jobs are being moved over seas. The reality is that America is producing more than it ever has. Do you agree that many Americans believe that America is producing less? Why?
Subscribe to:
Post Comments (Atom)
1 comment:
It's unclear, even to macroeconomists, why people have such a pessimistic view of the macroeconomy.
My opinion on this comes out of a new strain of literature called "folk economics" (this is a new enough field that there isn't data to support it, but it sure seems plausible to me). Economic growth existed nowhere before 350 years ago, and much more recently in many places. The great thing about growth it that everyone can be a winner; to win you don't have to make someone else the loser. But, through most of our history we didn't have economic growth, and therefore a rational person would view all transactions as creating winners and losers. If we evolved with or were conditioned to this sort of response, and still have it somewhere vestigial in our minds, then it is very easy to be suspicious of growth. Growth means someone is getting rich, and with tha mindset someone else must be made poor.
Post a Comment