Economics Archives

Economic Growth of the 1920s and 1950s: New-Era Thinking

What caused the economic growth of the 1920s? In what ways was this similar to the 1950s economic boom? The economic growth of the 1920s and the 1950s economic boom was caused by “new era” economics, a mindset where investors began to believe that market growth would continue for a long period of time due to cultural changes. To understand why these booms happened, you need to understand this mindset. Learn what caused the economic growth of the 1920s and 1950s and how new-era thinking contributed.

What Makes Something Go Viral? 5 Reasons Ideas Catch On

What makes something go viral? Why do some ideas catch on when others don’t? Economist Robert J. Shiller contends that narratives drive behavior far more than we might realize. He outlines five factors that contribute to the widespread dissemination of economic narratives: memorable visuals, emotional resonance, influential endorsers, holistic explanations, and a human-centric focus. Continue reading to understand these virality factors that apply to narratives of all kinds.

Stock Market Speculation & the 2 Types of Psychological Anchors

What causes stock market speculation? How do psychological anchors influence investors? Stock market speculation is influenced by psychological anchors, both quantitative and moral, which ground an investor’s decisions even more than recent news about company performance. Taking a look at how these anchors work gives insight into why certain stocks grow and when. Let’s take a look at how quantitative and moral psychological anchors and how they influence stock investors.

Gold Standard vs. Fiat Currency: Is the Issue Just Psychological?

Which is better—the gold standard or fiat currency? Could you make a sound economic argument for your position? In Narrative Economics, economist Robert J. Shiller argues that human beliefs and actions, rather than numbers and statistics, ultimately drive economics. Specifically, he writes that beliefs about the gold standard are part of a recurring American economic narrative. Read more to learn Shiller’s take on the gold standard vs. fiat currency debate.

Tips on Investing in Stocks: How to Avoid Overspeculation

What are some tips on investing in stocks? How can you avoid being caught in a speculative bubble? The best tips on investing in stocks include recognizing overpriced assets in the market and diversifying your portfolio. To avoid overpaying for stocks, you should consider these factors more in-depth. Learn why stocks become overpriced and how to avoid losing money in investments.

Machines Taking Over Jobs: A Tale as Old as Time

Are you worried that you’ll lose your job to a machine? What’s the historical precedence for this concern? Economist Robert J. Shiller points to several narratives that tap into fundamental themes that have shaped our collective understanding of past economic events. In turn, the narratives themselves come to have a profound influence on future events. One of these narratives entails machines taking over jobs. Keep reading to learn about this recurring economic narrative that provides some needed perspective.

2 Narratives Borne Out of Elon Musk’s Charismatic Leadership

Why is there a market for electric vehicles? Why are people venturing into the arena of space travel? Economist Robert J. Shiller asserts that certain narratives take off and take hold because they receive influential endorsements. He credits the charismatic leadership of Elon Musk for two of these economic narratives. Keep reading to learn how Elon Musk’s charismatic leadership has captured our imagination in two sectors of the economy.

Narrative-Based Economic Forecasting Methods (Robert Shiller)

What if economists collaborated with psychologists and sociologists? How could they benefit from spending more time on social media? In Narrative Economics, Robert J. Shiller argues that human beliefs and actions, rather than numbers and statistics, ultimately drive economic outcomes. From this perspective, he suggests that we adopt new approaches that broaden our understanding of economic events and help us make better predictions. Read more to learn about Shiller’s proposed narrative-based economic forecasting methods.

4 Economic Narratives We Can’t Shake (+ How They Work)

What are the consequences of the “American dream” narrative? What’s the truth about the gold standard? Economist Robert J. Shiller writes that narratives are extraordinarily powerful because they help us make sense of the world. By organizing random events and observations into stories with clear narrative arcs, we come to understand our world, how it came to be, and our place within it. Keep reading to understand how narratives work and to learn about four recurring economic narratives.

The United Auto Workers Union Strike: Background & Views

Does the public support the United Auto Workers union strike? Who does the strike affect the most? More than 34,000 members of the United Auto Workers union have been on strike for over a month, halting production at key plants. Polls show strong public support for the striking workers, which suggests sentiment may be shifting toward unions in the US. Continue reading for a background on the UAW strike and the opinions surrounding it.