People are worried because some people say that the economy might not do well in 2023. But there are other people like Christopher Thornberg, PhD who have a more positive view.

It’s important to know that the people who predict a downturn in the economy are often wrong. They didn’t predict the last four times the economy went down and they said the economy would go down other times, but it didn’t.

Also, just because people aren’t feeling confident about the economy, doesn’t mean it’s going to have a bad time. It just means that people are reading and hearing a lot of negative news.

There’s something called an inverted yield curve, which some people think means the economy is going to have a bad time. But it actually just means that the people who control the money (the Federal Reserve) are making it harder to borrow money. This often happens before the economy has a bad time, but it’s not the only reason.

A recession happens when the economy can’t produce as much as it should because resources aren’t being used correctly. This can happen when the economy is changing quickly, like during the COVID pandemic. But usually, recessions happen when people get too excited about the economy and start spending too much money.

People are worried about a recession in 2023 because the economy slowed down a bit in 2022. But this was expected because there was a lot of extra money put into the system because of the pandemic. Now the economy is just trying to get back to a normal level.

So, it’s good to be prepared for the worst, but there’s no clear reason to think the economy will have a bad time in 2023. The unemployment rate is still low and people are still spending money, which helps the economy grow. Let’s stay positive and hope for a good future for the economy!

Want this in a more in-depth, academic way? Read the insights from Christopher Thornberg, PhD.