Pessimistic bias is the public's tendency to underestimate how well the economy is doing and overestimate decline relative to economists; this bias has good US data but, unlike the other three, is less clearly cross-cultural or stable over time.

factualpending

Speaker

Bryan Caplan

Evidence Quote

people tend to underestimate how well the economy is doing now and it's going to get even worse

Source

Bryan Caplan on The Myth of the Rational Voter 6/25/2007EconTalk
Created: 6/15/2026, 9:20:37 AM

My Notes

Loading notes...