If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?
In: Economics
The man who sold very good hot dogs
There was once a man who lived by the side of the road and sold hot dogs. He was hard of hearing so he had no radio – he had trouble with his eyes, so he read no newspapers and of course he didn’t look at television. But he sold very good hot dogs. He put up signs on the highway telling everyone how good they were, he stood on the side of the road and cried out to all that past ‘buy a hot dog, they are the best in town’.
And people bought his hot dogs and he increased his meat and bun orders. He bought a bigger stove to take care of all the extra business. He finally got his son to come and help him out with his business.
But then something happened, his son who had been well educated said . . . ‘ Father, haven’t you been listening to the radio or reading the newspapers or watching television? There’s a big recession happening right now. The current business situation is terrible in this country – we have problems with unemployment, high living costs, strikes, pollution, the influence of minorities and majorities, the rich, the poor, drugs, alcohol, capitalism and communism ‘.
Where upon his father thought, ‘ well my son’s been well educated, he reads the papers, listens to the radio and watches television, so he ought to know ‘.
So his father cut down on his meat and bun orders, took down all his advertising signs and no longer bothered to stand by the side of the road to promote and sell his hot dogs, . . . . and his hot dog sales fell almost overnight.
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