The pandemic created a massive sectoral reallocation: incomes were maintained through fiscal support but people couldn't consume services, so everything went into goods, creating inventory backlogs that took years to clear; the statistical system overweighted these goods indicators because it's geared to the old manufacturing-heavy economy, causing people to overestimate recession probability.

factualpending

Speaker

Mark Dorciak

Evidence Quote

covid basically shut down Services right... it all went into Goods... we had a big surge in manufacturing and there was a backlog... everyone scrambled to ramp up their production... we had an inventory glut... our statistical system is geared towards the old economy we used to have that was much more manufacturing heavy

Source

The Crisis In Monetary Policy: It Doesn't Matter That Much | Mark DowForward Guidance
Created: 8/11/2026, 1:22:08 AM

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