Tuesday, October 07, 2008

Economics and Irrationality

The culture of hype that we live in may be leading us to overreact to bad economic news:

In the Agora: Irrational Pessimism:

"Despite the fact that economists' worst-case scenarios predict unemployment as high as 10-12% and a drop in GDP of 2-4% next year if the economic assistance package fails to thaw the credit markets, an astonishing 59% of Americans see a depression as either very likely (21%) or somewhat likely (38%). In the poll, 'depression' was defined as 25% unemployment and millions of Americans homeless and unable to feed their families."

Read the rest.

(Via In the Agora.)

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