> This lack of opportunities could create more pessimism and disaffection than economic conditions warrant. An increasing body of economic research shows that people tend to form extrapolative expectations -- they expect recent trends to continue forever. Overoptimism is also a common psychological bias. Booms make a lot of young, energetic Americans believe that they’re going to get rich. On the one hand, this causes inevitable disappointment when the froth dissipates. But as long as there’s a gold rush somewhere in the economy, big dreamers can dream big.
So America needs another slot machine we can present to our youth to appease their cognitive biases?
So America needs another slot machine we can present to our youth to appease their cognitive biases?