I was just going through this article where they said that Obama was deliberately offering split verdict of the economy.WHY?? you might ask!Would not be people better off if you tell them that there is nothing to worry about and the recession has almost ended.Besides it would boost consumer's confidence and would go a long way in helping economy especially that of US where consumer spending accounts for two-thirds of the economy.
The answer is not actually the same as this.If you go along with the everything is fine mantra,people who are not seeing things with rosy coloured spectacles ,at least, would notice that you are being over optimistic and even worse,you are lying.They would stop trusting you and wont believe what you say,therefore, causing more harm than good.
President Harry S. Truman whimsically asked for a "one-handed economist." He complained that "all my economists say, `on the one hand ... on the other hand.'"THATS the reason most economists would rather sit on the fence.They wouldnt want being called over optimistic or pessimistic.
Maybe,I have been a littlee over optimistic so i will try to be more of a cry baby from now on:)
Sunday, June 21, 2009
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