Paul Samuelson? Economists? Wall Street Indexes? Katharyn Duff? Lawrence Summers? Niall Ferguson?
Question for Quote Investigator: Predicting the fluctuations of the economy is enormously difficult. Many economists have forecast recessions that never occurred. Here are three comical expressions:
(1) Economists have predicted 11 of the last 5 recessions.
(2) The markets projected twelve of the last eight recessions.
(3) Wall Street indexes predicted nine out of the last five recessions.
Would you please explore the provenance of this family of quips?
Reply from Quote Investigator: The earliest match known to QI appeared in “Newsweek” magazine in September 1966 within a column by prominent U.S. economist Paul Samuelson. Boldface added to excerpts by QI:1
… stock prices do show more ups and downs than gross national product or business indicators generally. To prove that Wall Street is an early omen of movements still to come in GNP, commentators quote economic studies alleging that market downturns predicted four out of the last five recessions. That is an understatement. Wall Street indexes predicted nine out of the last five recessions! And its mistakes were beauties.
QI conjectures that Samuelson’s remark initiated an efflorescence of related comments which appeared during subsequent months and years.
Below are additional selected citations in chronological order.
Continue reading “Quote Origin: Predicted Nine Out of the Last Five Recessions”