Why economists’ predictions are usually wrong

shutterstockBy Liz Farmer | Governing

When the Chinese stock market took a plunge in late August, it triggered a 1,000-point drop over just a few hours in the U.S. stock market. It also triggered worries about whether the sell-off was a sign of a slowing economy. The response from many economists was that the market was simply due for a “correction” and that the figures that really matter to the economy — job growth and unemployment — should remained unscathed.

So far, that’s held true. But the fact is, economic forecasting is an extremely inexact science. Most of the time, economists tend to predict fiscal growth well. But when it comes to crucial pivots in the economy — the major downturns and upswings — they’re dead wrong almost every time.

Continued:

Share this!

Additional Articles

Top master-planned communities for 2024

By AZ Big Media Here are the Top 10 master-planned communities in Arizona, based on public voting for the 2024 edition of Ranking Arizona, the state’s biggest and most comprehensive business opinion poll. Ranking Arizona

Read More »
News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.

November 2015
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30