Actually, I first heard the answer to the question, “How do you know economists have a sense of humor?” from the EconTalker, Russ Roberts. I don’t know if he came up with it, but since I heard it first from him, I will credit him with it (at least purposes of this post).1,2
But I am going to change the question a little, though the answer is still the same. Here is my phrasing: “How do you know economists have a sense of the absurd?”
The answer to both ways of phrasing the question is the same: They use decimal points.
And they say it with such assurance and definiteness that people believe them, even though the next month or quarter, or next year, you discover their prediction was off not by a decimal point but by a whole integer – or more. Or the number and/or percentage is adjusted by so much that the decimal point disappears into nothingness. At which point they will make another prediction or state another number with the same assurance and definiteness as the one the month (or quarter or year) before.
As to whether this is humorous or a bit absurd, I will leave to you, though I think it is some of both.
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1 This website indicates that former U.S. Treasury Secretary William E. Simon (1974 to 1977) may have been the first to say it.
2 Mr. Roberts’ quote is actually about macro-economists, but I broadened it to include all economists.
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