12 November 2016

Mind Game

In many ways, economics is a mind game.

What makes someone decide to buy something is the confidence that opportunity cost won't bite them in the ass and make them wish they'd saved the money.

It's a mental exercise.

At least for things with elastic demand.

If people believe the economy is going to get better, it tends to.

Note that this is distinct from hoping the economy gets better.

If the election of Mr Trump restores that confidence and belief, we could easily avoid the dire predictions of economic collapse.

That Mr Obama's presidency was unable to restore that confidence, shows that most people who make spending decisions were seeing through the official lies published to make the world seem rosier than it was.

But an honest assessment of how bad it is, with an outline of a workable plan to dig out can make things better and faster than hiding from reality.

3 comments:

  1. I had a kid at work tell me that Trump's plan to double growth to 4% was impossible. A little discussion showed that he didn't have an understanding of how bad growth under Obama has been for the past 8 years, and what healthy growth looks like.

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    Replies
    1. Tell him that 4% growth was the slowest the economy grew under Reagan, with a 12.5% spike the first year and the 3-8th years all being over 6%.

      The Hated Bill Clinton managed an average of 3.8% over his 8 years, with peaks of 7-8% growth.

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    2. Interestingly, if you talk to most libtards, they will usually claim that growth under Clinton was much greater than under Reagan. They'll go on and on about what hard times the Reagan years were and how his economic policies didn't work and lift up Clinton's years as the most prosperous of the 20th Century.

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