Thursday, May 16, 2013

Revenue Forecast, Tea Leaves

I am used to economists being pessimistic.  Or not agreeing.  That I expect.  What I don't expect is optimistic economists at the end of the fiscal year.  Here are some more tea leaves that leave me thinking..

* When asked by a Legislative oversight committee whether the recent increase in capital gain tax revenues was propotionately spread from rich to poor (what do you think??), the economist responded with "it is an issue of fairness".

Now excuse me, but the homeless guy at the bus shelter probably doesn't have a 401K, or a nice tidy stock portfolio.  Is this the latest entitlement that I didn't yet hear about?  Cell phones aren't enough, but we need to give away stock so everyone is part of the modern financial system - its only fair right?

Anyhow, I have never heard an economist use the word "fairness", I guess I thought they were about measuring objective reality and forecasting, not trying to pass public policy social judgement.

* The group, which is a forecasting arm of state government, praised the Legislative revenue office for their assistance.  Nice to be helpful and all.  And I guess when it comes to something big like a state economic forecast, you need to collect all views, and they certainly have the data.  But wait.  A Democratically controlled legislature, a Democratic governor, well it all leads to a certain spin on the "forecast" of the future doesn't it.

The presenter even mentioned that one of his advisors thought there was a 0% chance of a recession in 2014.  Really?  Since when are economists so rock solid sure about things?

Like in that movie "Zero Dark Thirty", where she says she is 100% sure that Bin Laden is in that house in central Abbotobad, Pakistan.  Then she recants, saying "oh, ok, 95%, I know certainty makes you guys crazy".

Someone spiked these economists cause they were too optimistic to be praticers of the dismal science.



No comments:

Post a Comment