Wednesday, 6 February 2013

SAEE: who was right?

Bryan Caplan argues, economists mostly agree with each other, as compared to the results of the investigation, the reports to the general public and the economy (SAEE) Americans and economists:

Leading economists to correlate with the dispute is a political ideology and, to a lesser extent, the party affiliation. Liberal conservative Republican economists agree, like taxes, regulation, expected profits and the salaries of company directors and some of the employment-related problems. Conservative economists are also optimistic about the future of the economy and much more. Note the ideological differences are is a testament to the past or the present performance. Economists
cross-party much the same direction, inequality, real income and real wages over the last two decades.

I can not find the agreement in the past very comforting: financial advice is to give good effects in the future. However, I would point out to the ex post evaluation of the differences, the forecasts are an opportunity. In fact, when Bryan's book was published in 2002, a 5-year projections on the timeline had already come and gone. But there is nothing to prevent the from checking now. [Please note, I'm ready after that, until now, with the purpose to put it before exploring the information.] The results below the fold.

SAEE was in 1996 and the following question:

Over the next five years, do you think the average American living standards to rise, or fall, or remain about the same?

The u.s. median household income (inflation-adjusted) rose from 5 in the course of the year, economists and particularly cautious economists anticipated. [ETA: as well as the personal median income.] The forecast after the household median income peaked in 2007, and is now slightly lower than in 1996. [ETA: median personal income is slightly higher, HT Todd Kuipers.]

A single data point for a bit, but if someone assembled at a series of such predictions, it could be very useful to assess to what extent the different ideologies of the empirical elements are "virtual reality-based." Maybe, because such a project would bring to the arrogance of the ideologues in the competing factions hoping to advance, showing their ideological superiority.

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