A reality check on the US economy

More volatile even than the markets, media reporting veers from double-dip recession to strong recovery. So, some sobriety …

Dean Baker
guardian.co.uk, Monday 12 March 2012 10.32 EDT

Economists and economic reporters are about as quick to change their assessments of the economy as teenagers are to shift allegiances to the latest pop star. While the economy rarely undergoes rapid shifts in direction, the public could be excused for not recognizing this fact – based on economic reporting.

Unfortunately, the analyses that look at underlying trends to determine the future course of the economy are the exception. More typically, reporting amplifies the latest report and ignores other evidence about the likely future direction of the economy.