That's not what rational expectations means, it's just a way of saying things are priced in, so that if the price of eggs went up there is probably a good reason for it and it doesn't mean you can go and start an egg business to compete on lower prices.
> economists when people aren’t rational economic actors
This is more "economist selectively chosen by media that is trying to sell a downturn narrative when people don't act like there is an economic downturn when aggregate economic measures also don't show a downturn [...]"
Heck, even the article linked to support "people have drawn down their savings" in this article says notes of the reduced savings rate trend, "When the economy is good — like now, with the unemployment rate seemingly pinned below 4%, or back in the mid-2000s — people are more willing to operate with low levels of savings, because they're confident they're going to keep receiving a paycheck."
People aren't acting like there is a downturn because there isn't a downturn and media that is trying to sell a narrative about there being a downturn and the economists they select to respond are acting shocked that no one is acting like it is a downturn and using that to somehow sell the narrative that its even worse than if it was a downturn where people were acting normally for a downturn.
astrange|2 years ago
https://someunpleasant.substack.com/p/economists-do-they-kno...
dragonwriter|2 years ago
This is more "economist selectively chosen by media that is trying to sell a downturn narrative when people don't act like there is an economic downturn when aggregate economic measures also don't show a downturn [...]"
Heck, even the article linked to support "people have drawn down their savings" in this article says notes of the reduced savings rate trend, "When the economy is good — like now, with the unemployment rate seemingly pinned below 4%, or back in the mid-2000s — people are more willing to operate with low levels of savings, because they're confident they're going to keep receiving a paycheck."
People aren't acting like there is a downturn because there isn't a downturn and media that is trying to sell a narrative about there being a downturn and the economists they select to respond are acting shocked that no one is acting like it is a downturn and using that to somehow sell the narrative that its even worse than if it was a downturn where people were acting normally for a downturn.