Deconstructing the shocking truth of consumer confidence by Dan Ariely
We have a market paradox on our hands. Consumer confidence is close to a 40-year low, suggesting that the economy is in worse shape now than in times that seemed far darker, such as the early 1980s, when inflation and unemployment both crept into double digits. Yet many of the current economic indicators, including inflation and unemployment, are rather positive -- or at least not as negative as consumer sentiment implies.One idea comes from psychologist James Pennebaker at the University of Texas at Austin. Pennebaker's research repeatedly has shown that the active process of trying to make sense out of traumatic events -- often done through writing -- can help individuals recover from them.
A conscious effort to analyze and explain these economic crises is not only an important journalistic duty, it also is an essential element to our national mental health. But we still need to think about how to prevent such economic shocks. In fact, in our current vulnerable state, I am worried that another immediate shock -- most likely to occur in the health-care market -- could be too much for us to bear.
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