This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program asks if we can talk ourselves into a recession. Mike, worries about a possible impending recession continue to dominate the headlines. This has led some to be concerned that so much talk about a recession could actually trigger one. Is this possible?
- This has been long discussed by economists and others
- Perhaps best summed up by President Franklin Roosevelt’s comment in his first inaugural speech: the only thing we have to fear is fear itself
- There are big ties between economies and psychology
- If fearful – likely will spend less – which can lead to a downturn
- My view – have to have a trigger for the fear
- Today – trade wars, slowness in other countries, stock market, etc
- So valid concerns
- But, fear can make them bigger – so I think we can talk ourselves into a deeper and earlier recession
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.