Posted by Larry Doyle on October 14th, 2010 7:26 AM |
Economics is the most inexact of sciences. As much as we may think we can understand our future economic landscape based upon the study of the past, a variety of twists, turns, and unknown challenges inevitably come upon us. This reality has never been more prevalent than in our ‘Uncle Sam’ economy circa 2010. Do not think for a second that the ‘grand wizards’ in Washington currently undertaking the massive financial experiment throughout our economy do not appreciate this. They do. They just would not admit it.
Can we look toward private enterprises in an attempt to ‘see through’ the Washington smoke and mirrors? In fact we can. I make no bones about my admiration for the work of Rick Davis at Consumer Metrics Institute. As Rick so boldly states, the work at CMI is focused on:
“Bringing the measurements of critical economic activities into the twenty-first century by mining tracking data for an understanding of what American consumers were doing yesterday.”
Well, what were our fellow Americans doing yesterday and the days before that? (more…)
Posted by Larry Doyle on September 27th, 2010 7:21 AM |
The study of human behavior may be considered a science but to me it is the greatest and most challenging of arts. Why is that? For the very simple reason that while we are limited in the ability to study human behavior by reviewing the past, we are challenged by the fact that future behaviors are forever changing. The lessons of the past often do repeat themselves in the future; however, the environment of the PRESENT has NEVER truly been experienced so our current and future behaviors are so hard to forecast. Thus, is economics more art or science? Perhaps we can cover both bases and call it as much an art as a science especially in the Uncle Sam Economy circa 2010.
I raise this topic based upon a recent commentary put forth by a Sense on Cents favorite site, Consumer Metrics Institute. Rick Davis continues to paint an exquisite work as he recently penned, The Diverging GDP,
Prior to each revision to the GDP we are asked for insights into the likely course of those corrections from the Bureau of Economic Analysis (“BEA”) of the U.S. Department of Commerce. Most of the questions we have received recently center on the increasing divergence of our Daily Growth Index from the BEA’s GDP over the past couple of quarters: (more…)