In early 2011, economists noted that the chances of a double-dip recession were slim, and that the economy seemed to be gaining strength on its own merits, not on the back of government stimulus. The majority of economists surveyed felt that, despite weak areas, the U.S. economy was poised for modest growth [source: Izzo].
Why do we care what economists think? With the economy, perception is almost as important as reality. Whether or not someone invests in your business or builds a factory in your country is based largely on how they perceive the strength of your economy. Rosy projections by economists won't fix a troubled economy, but they help encourage investors when the economy is going through a genuine recovery.
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- United Nations Statistics Division. "National Accounts Main Aggregates Database." (Accessed Feb. 16, 2011)http://unstats.un.org/unsd/snaama/dnllist.asp
- U.S. Bureau of Labor Statistics. "Unemployment rate." Feb. 10, 2011. (Accessed Feb. 18, 2011)http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&tdim=true&dl=en&hl=en&q=unemployment
- Weiner, Eric. "Is a Weak Dollar Really So Terrible?" NPR, Oct. 3, 2007. (Accessed Feb. 18, 2011)http://www.npr.org/templates/story/story.php?storyId=14901181
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- Xuequan, Mu. "Gallup shows U.S. jobless rate worsens in mid-February." Xinhuanet.com, Feb. 18, 2011. (Accessed Feb. 18, 2011)http://news.xinhuanet.com/english2010/business/2011-02/19/c_13739114.htm
- Zhou, Wanfeng. "Dollar falls to session lows vs. euro, yen after US auction." Reuters, Feb. 9, 2011. (Accessed Feb. 18, 2011)http://www.reuters.com/article/2011/02/09/markets-forex-dollar-idUSN0921201420110209
What does laissez-faire economics really mean, and how does it work? What did Adam Smith mean when he coined the phrase? HowStuffWorks investigates.