A Recession Is Coming (Eventually). Here's Where You'll See It First:
Last week's report on second-quarter gross domestic product showed that the economy slowed last spring. It also came exactly 10 years since the Great Recession ended, making this officially the longest expansion in American history. (Well, probably. More on that in a second.) So perhaps it's no surprise that forecasters, investors and ordinary people are increasingly asking when the next downturn will arrive.
Economists often say that "expansions don't die of old age." That is, recessions are like coin flips — just because you get heads five times in a row doesn't mean your next flip is more likely to come up tails.
Still, another recession will come eventually. Fortunately, economic expansions, unlike coin-flip streaks, usually provide some hints about when they are nearing their end — if you know where to look. Below is a guide to some of the indicators that have historically done the best job of sounding the alarm.
[...] One caveat: Economists are notoriously terrible at forecasting recessions, especially more than a few months in advance. In fact, it's possible (though unlikely) that a recession has already begun, and we just don't know it yet.
"Historically, the best that forecasters have been able to do consistently is recognize that we're in a recession once we're in one," said Tara Sinclair, an economist at George Washington University. "The dream of an early warning system is still a dream that we're working on."
The article goes on to list and expand upon these indicators which are:
1: The Unemployment Rate
2: The Yield Curve
3: The ISM Manufacturing Index
4: Consumer Sentiment
5: Choose Your Favorite
Do you think the US economy is on the verge of a recession? What have you done, if anything, in preparation for the eventual downturn?
(Score: 2) by FatPhil on Tuesday July 30 2019, @09:52PM (7 children)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by Z-A,z-a,01234 on Wednesday July 31 2019, @07:29AM (6 children)
Unfortunately the economists are like priests. They have a religion to protect and cannot really see the world.
Take austerity for example, it clearly doesn't work, but they think it's the only way to get a country to be "competitive". Now "competitive" is a relative term, it is impossible for all to be "competitive". When some country is competitive, it follows that someone else is not. So the whole premise is flawed.
Growth is another myth: you cannot grow forever, but economists routinely think so. read this and weep: https://dothemath.ucsd.edu/2012/04/economist-meets-physicist/ [ucsd.edu]
(Score: 2) by FatPhil on Wednesday July 31 2019, @08:25AM (5 children)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by FatPhil on Wednesday July 31 2019, @08:26AM
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by Z-A,z-a,01234 on Wednesday July 31 2019, @08:54AM (3 children)
The exponential function was known since the 1600s :)
Regarding Malthus, Bartlett and population growth, Hans Grosling had a nice video explaining why it will eventually stop growing: https://www.youtube.com/watch?v=FACK2knC08E [youtube.com]
Still, 12 billion humans will make it quite crowded.
(Score: 2) by FatPhil on Wednesday July 31 2019, @09:15AM (2 children)
(Ditto IPCC and their repeated over-estimation.)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by Z-A,z-a,01234 on Wednesday July 31 2019, @09:48AM (1 child)
yeah, but the number of children per woman has constantly decreased. That is the most important part.
(Score: 2) by Azuma Hazuki on Saturday August 03 2019, @01:43PM
Proud to say me and my girlfriend will be contributing an average of 0.0 children to overpopulation! We may actually count for a negative number at some point since she's open to the idea of adoption.
I am "that girl" your mother warned you about...