A widely predicted recession never showed up. Now, economists are assessing what the unexpected resilience tells us about the future.
The recession America was expecting never showed up.
Many economists spent early 2023 predicting a painful downturn, a view so widely held that some commentators started to treat it as a given. Inflation had spiked to the highest level in decades, and a range of forecasters thought that it would take a drop in demand and a prolonged jump in unemployment to wrestle it down.
Instead, the economy grew 3.1 percent last year, up from less than 1 percent in 2022 and faster than the average for the five years leading up to the pandemic. Inflation has retreated substantially. Unemployment remains at historic lows, and consumers continue to spend even with Federal Reserve interest rates at a 22-year high.
The divide between doomsday predictions and the heyday reality is forcing a reckoning on Wall Street and in academia. Why did economists get so much wrong, and what can policymakers learn from those mistakes as they try to anticipate what might come next?
Give it up OP. No economy news is good enough for this crowd. It’s, uh, Biden, or billionaires, or Wall Street, or someone, trying to fool us.
Inflation is well under control, yet the guy above you is bitching about skyrocketing prices. No, prices did not come back down, not yet anyway. Why would they?! Have they ever?! Saw something the other day that indicated prices might fall just a bit? In any case, deflation is generally a bad thing. And I mean bad for the general economy we all participate in, not just megacorp profits.
See, lemmy interprets any positive financial news as, “All is well!” Gets mad.
Fuck no all is not well, and anyone paying attention sees this. My #1 concern is rental prices. The buyers’ market may sort itself out eventually, usually does, but renters are taking a fucking of historic proportions. Home ownership has always been a path to savings, building wealth and retirement. Yet young people are calling bullshit, wanting to throw that out because they can’t get theirs. I get the anger, but call your reps, fight the good fight. This one is a big, big deal.
I’m down for some legislation limiting corporations from owning $X properties, but the devil is in the details. And oh gods are there details. Plus, we gotta fight uphill against the rich and their lobbyists.
You’re trying to bring positive news to young people with shit jobs who have watched every chance of a future yanked out from under them. I get the cynicism, I really do. But FFS, look at the poster below me decrying tech layoffs. He doesn’t understand that employment space, he’s getting angry reading headlines, has no experience or context.
Those of us in the tech sector are used to it. We have the skills to run right out and get another good paying job. And we always get paid more. That sucks, but it’s also reality. And “thousands” ain’t much in a country of 333,000,000.
Anyway, I’ve splatted enough BS. Going to work on fixing my house up a bit.
what kind of weird inflation rant it this. admitting that the price spikes are still around but inflation is under control, and that it’s actually a good thing that all the prices went up while my wages stayed the same, prices going down is a bad thing. No explanation, just because. Is it because the rich get less money to trickle down to us?
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Remember 2008-2010?