Wednesday, December 16, 2009
"The American economy is in its worst shape in a quarter-century. At least that appears to be the belief of the consumers questioned by the Conference Board for its consumer confidence survey, for which premliminary November results were announced this week. ... Why the glum opinion, at a time when many economists say they think the recession that began in December 2007 ended sometime last summer or fall? The primary reason is unemployment. ... Not since late 1982 have people been that negative on jobs. The history of the present-conditions index indicates that public perceptions often trail reality", my emphasis, Floyd Norris (FN), NYT, 28 November 2009: http://www.nytimes.com/2009/11/28/business/economy/28charts.html.
FN, could the economists' measuring sticks be wrong? Might public perceptions have as great a claim on reality as economic constructs like GDP?