The Economic Perspective: “Cycle or Choice?”

This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks, cycle or choice.   Mike, one of the biggest concerns about today’s economy is the possibility of a near-term recession.  While there are many opinions and forecasts about the likelihood of an up-coming recession, one question is whether policy-makers have any control over the matter.  Please go in to a little detail about this question.

  • Some say we have no choice – that whether a recession happens is determined by other factors
  • A philosophy supporting this “no choice” viewpoint is one believing in regular economic cycles
  • Idea is the economy grows for a while, likely becomes over-extended, then must pull-back and discard the excess before growing again
  • An alternative viewpoint believes in choice – that policy-makers have the tools to avoid a recession
  • Strongest holders of this view today is that the trade war – mainly with China – is causing recession worries
  • So, if make a trade deal, then recession will be avoided
  • Clearly a clash of ideas and impacts
  • 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