Why Are Economists Always So Pessimistic?
I read a comment by an economist named Weiss in my local Sarasota paper the other day (Yes, I’m a dinosaur who still reads printed newspapers; I like the tactile sensation.) He cited five reasons why things will get worse in the near future. I don’t believe him, but it struck me that apart from administration economists and the research folks at NAR, no economists ever tend to see the bright side of things. Why is that? Well, now it can be revealed: it’s all about self interest. If I tell you things are going to be better, and they get worse, my reputation is shot. If I tell you things are going to get better and they do, you are so happy you forget I ever said anything. If I tell you things will get worse and they get better, see the sentence immediately preceding this one. But, if I tell you things will be worse and they are worse, I’m a (supply your own word) genius, and my fortune is made. I call this the Henry Kaufman effect after the economist who called one recession correct and dined out on that for the rest of his life. He was never right again. So, when you hear an economist predict doom and gloom, it’s not necessarily because he believes it, it’s just a smart career move. By the way, I think this recession is on its last legs and the real estate sector is getting better, so don’t accuse me of feathering my own nest!




