from the world's big
The conception rate can tell us when the next recession will hit
Researchers were shocked at how accurate it was and that no one had noticed it before.
Economics is really more of an art than a science. But a downturn has an enormous impact on people’s lives. At the end of the Great Recession, 2.5 million US businesses had shut their doors and nearly 4 million homes were foreclosed on. As a result, economists have been under increasing pressure to accurately predict exactly where the economy is going, and when a downturn might strike. In recent years, they’ve begun diversifying what indexes they use, to give us a better picture of where things are headed.
Some are sober and unexciting things like manufacturing figures. Others are more left field. Consider Alan Greenspan’s remark that men’s underwear sales drop just before a recession or the quizzical "lipstick index," which is no longer considered reliable. Although we have several predictors in place, almost no one saw the Great Recession coming, until it was too late. And in such cases, the lone wolf who issues a dire warning is often ignored. Now, researchers may have found a fairly accurate predictor, the conception rate.
Three US economists: Kasey Buckles, Daniel Hungerman, and Steven Lugauer, examined the conception rate in the US between 1989 and 2016, to see if there was any correlation between it and a recession. This large chunk of time included more than 100 million births. What the economists found was that the conception rate consistently drops before a recession is about to hit. Their working paper was published recently by the National Bureau of Economic Research (NBER).
Unlike the “lipstick index,” the conception rate seems an accurate indicator of the economy’s health. Credit: Getty Images.
It’s true that the birthrate has been considered before. What Buckles, Hungerman, and Lungauer actually looked at was the conception rate—the decision to have a baby. The economists examined clinical estimates for conception from the National Center for Health Statistics, and crossed-referenced them with GDP figures and recession dates—as reported by the NBER. They also focused on months rather than years. What they found was remarkable. The last three economic downturns in the US saw the rate of conception fall several months (or quarters) before a recession hit.
Raising a middle-class child in the US to the age of 17 costs around $235,000, according to a 2012 USDA report. That’s not including putting them through college, which could raise the cost to almost $1 million. Because of this, people are really careful about having children. They take great pains to evaluate their financial situation before deciding to start a family, or add another child to their brood.
At the opening of 2008, unemployment was low and stocks were hitting record highs. A 2007 poll among business executives found that most were hopeful about the future, even as the shift had already begun. With the usual indicators showing positive signs, no one could’ve guessed that the subprime mortgage crisis would ultimately sink Lehman Brothers and stick us in a quagmire that’s taken years to climb out of. If only economists would’ve noticed that the conception rate dropped a whopping 4% in 2007, we could’ve been better prepared. Seems however that many people were already sensing a downturn and acted accordingly, according to these economists.
Future economic forecasts are likely to include the conception rate. But how will this data be collected? Credit: Getty Images.
"The nature of each recession has differed and so what conversation goes on at the kitchen table might be different,” Hungerman told the BBC, “but I do think that people talk about the future when they try to have a baby and in aggregate they seem to do a good job thinking about it." He said he and colleagues were shocked at the correlation, but more so that no one else had discovered it.
This metric might be pretty accurate in determining the severity of recessions as well, although it’s too soon to tell. The conception rate dropped much more precipitously before the last recession, than it had for before the prior two, in the early 2000s and the early 1990s. As with the most recent, the latter two recessions showed no drop in housing prices before they hit. So how can we use the conception rate as an indicator, without trampling on people’s privacy?
Suggested options include monitoring internet search data, such as searches for conception or pregnancy advice, fertility information, or due date calculators. Another is tracking purchases for things like pregnancy tests. The period after the Great Recession has shown a lag-time in conception, what these economists call a “baby-less recovery.” But with unemployment exceedingly low and other positive signs, it’s likely we’ll soon see an uptick in the conception rate.
To learn about the now debunked “lipstick index,” click here.
Educators and administrators must build new supports for faculty and student success in a world where the classroom might become virtual in the blink of an eye.
- If you or someone you know is attending school remotely, you are more than likely learning through emergency remote instruction, which is not the same as online learning, write Rich DeMillo and Steve Harmon.
- Education institutions must properly define and understand the difference between a course that is designed from inception to be taught in an online format and a course that has been rapidly converted to be offered to remote students.
- In a future involving more online instruction than any of us ever imagined, it will be crucial to meticulously design factors like learner navigation, interactive recordings, feedback loops, exams and office hours in order to maximize learning potential within the virtual environment.
A leading British space scientist thinks there is life under the ice sheets of Europa.
- A British scientist named Professor Monica Grady recently came out in support of extraterrestrial life on Europa.
- Europa, the sixth largest moon in the solar system, may have favorable conditions for life under its miles of ice.
- The moon is one of Jupiter's 79.
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Water Vapor Above Europa’s Surface Deteced for First Time<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="9c4abc8473e1b89170cc8941beeb1f2d"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/WQ-E1lnSOzc?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
A study finds people are more influenced by what the other party says than their own. What gives?
- A new study has found evidence suggesting that conservative climate skepticism is driven by reactions to liberal support for science.
- This was determined both by comparing polling data to records of cues given by leaders, and through a survey.
- The findings could lead to new methods of influencing public opinion.
Mind the cues<div class="rm-shortcode" data-media_id="CabkeAzx" data-player_id="FvQKszTI" data-rm-shortcode-id="169377c88f392a86f6c42180b74820a5"> <div id="botr_CabkeAzx_FvQKszTI_div" class="jwplayer-media" data-jwplayer-video-src="https://content.jwplatform.com/players/CabkeAzx-FvQKszTI.js"> <img src="https://cdn.jwplayer.com/thumbs/CabkeAzx-1920.jpg" class="jwplayer-media-preview" /> </div> <script src="https://content.jwplatform.com/players/CabkeAzx-FvQKszTI.js"></script> </div> <p>The gulf in accepting the science behind climate change also exists among party elites. It is well known to any American who is attentive to the news, as party leaders are often more than willing to discuss their take to journalists.</p><p>Using polling data going back to the 1980s, the researchers were able to create a chart showing the aggregate amount of climate skepticism among the general population. A similar diagram showing the Republicans' skepticism dating back to 2001 was sourced from a previous, similar study. It was shown to be highly correlated with the one produced for this study.</p><p>These charts were compared with media content from prominent newspapers that included implicit or explicit stances on climate change by significant political figures. These thousands of articles were classified by using key terms and which major political figures were quoted or referenced. The researchers compared the number of cues over time to measured skepticism and looked for "<a href="https://en.wikipedia.org/wiki/Granger_causality" target="_blank">Granger causality</a>," the tendency for one variable to predict the future value of another variable.</p><p>The model shows evidence of both in and out-group cue effects, though the repulsion to out-group cues was much more evident. A significant increase in Democratic cues in favor of climate science was followed by a rise in skepticism among Republican voters. Importantly, the cues lead, rather than follow opinion, and do so with consistency. Changes in view did not predict changes in the number or direction of cues. </p><p>The researchers also surveyed nearly 3000 adults to demonstrate the concept. This involved showing them a statement on the scientific consensus around climate change and a cue from either a Republican or a Democrat. This test confirmed the previous observation and provided further support for the notion that signals from leaders cause an increase in skepticism among some respondents.</p><p>Before my left-leaning and Democratic readers get too smug, this research references previous studies demonstrating a similar effect in the lead up to the Iraq War. However, in that case, the Democratic Party elites' mixed messages were countered by a Republican Party united behind the idea of invasion. The effect on the Democratic party rank and file was similar to that observed in this case. </p><p>Several other studies have examined effects similar to this for other issues. This study's importance is its focus on out-group cues and the effort placed into demonstrating a causal relationship between the statements of certain party elites and public opinion. Most previous studies focused purely on in-group cues or failed to differentiate between the two. </p>
Can thinking about the past really help us create a better present and future?
- There are two types of counterfactual thinking: upward and downward.
- Both upward and downward counterfactual thinking can be positive impacts on your current outlook - however, upward counterfactual thinking has been linked with depression.
- While counterfactual thinking is a very normal and natural process, experts suggest the best course is to focus on the present and future and allow counterfactual thinking to act as a motivator when possible.
“Upward” versus “downward” counterfactual thinking<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1NDYxOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NDM2MDY2OX0.njWs1qrV1vDBxU1V75tUduUW4TjJvEHglDWsK8ZF2l4/img.jpg?width=1245&coordinates=0%2C556%2C0%2C209&height=700" id="a15fa" class="rm-shortcode" data-rm-shortcode-id="98314d4d2b256ed08f42d369fe4ae080" data-rm-shortcode-name="rebelmouse-image" alt="concept of man thinking about the past one line drawing counterfactual thinking" />
What are upward and downward counterfactual thinking?
Image by one line man on Shutterstock<p><strong>What is upward counterfactual thinking?</strong></p><p>Upward counterfactual thinking happens when we look at a scenario and ask ourselves "what if" in terms of how our life could have turned out better. </p><p>Examples of upward counterfactual thinking are: </p><ul><li><em>"I wish I had taken that other job instead of this one 10 years ago - my life would be so much better if I had." </em></li><li><em>"I wish I would have gotten the part in that high school play, maybe I could have gotten into a theatre school and became an actor…"</em> </li></ul><p>Both of these examples have the ideology that if you had made different choices, your life right now would be improved. </p><p><strong>What is downward counterfactual thinking?</strong></p><p>Downward counterfactual thinking is, naturally, the opposite of upward counterfactual thinking in that we think about how things could have been worse if other decisions had been made. </p><p>Examples of downward counterfactual thinking are: </p><ul><li><em>"I'm so thankful I studied secondary education in university instead of psychology like I had originally planned - I love teaching high school kids and I never would have gotten to do that…" </em></li><li><em>"I'm so happy I left David when I got the chance, I can't imagine still being in an unhappy marriage with someone who doesn't support me…"</em> </li></ul><p>In these examples, we see the idea that if you had made different choices your life would not be as good as it is right now. </p>
How counterfactual thinking can impact your life<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1NDYxNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNjI2MDQxOX0.DIVQ-Yk0d6yE3tc743MH1Fz2pOg1TGHLmhp8dPp9UdY/img.jpg?width=1245&coordinates=0%2C0%2C0%2C0&height=700" id="522d7" class="rm-shortcode" data-rm-shortcode-id="da7df6ad916b043e3610223900d0f8df" data-rm-shortcode-name="rebelmouse-image" alt="man thinking what if written on chalkboard" />
How do upward and downward counterfactual thinking impact your life?
Photo by Brasil Creativo on Shutterstock<p>While many people don't see the point in "what if" scenarios, various studies have found that downward counterfactual thinking can be more associated with psychological health compared with upward counterfactual thinking. Not only that, but research has also shown upward counterfactual thinking can be linked with current and future depression.</p> <p><strong>Downward counterfactual thinking tends to be more associated with psychological health </strong></p><p>According to a <a href="http://journal.sjdm.org/jdm06136.pdf" target="_blank">2000 study</a>, downward counterfactual thinking can be linked with better psychological health compared to upward counterfactual thinking. More importantly, in cases where downward counterfactual thinking did lead to negative feelings, those feelings acted as something of a motivator for people to take productive actions to better their current situation. </p> <p><strong>Upward counterfactual thinking tends to be more associated with depression </strong></p><p><a href="https://www.sciencedirect.com/science/article/abs/pii/S0272735816301714#:~:text=An%20upward%20counterfactual%20(as%20opposed,Markman%20and%20McMullen%2C%202003)." target="_blank">According to a 2017 study</a> that pooled a sample of over 13,000 respondents, thoughts about "better outcomes" and regret (upward counterfactual thinking) were associated with current and future depression. </p> <p><strong>Downward counterfactual thinking can actually improve your relationships and is more often engaged in by women than men.</strong></p><p>In a <a href="https://dspace.sunyconnect.suny.edu/bitstream/handle/1951/67589/Studer_Thesis.pdf?sequence=1&isAllowed=y" target="_blank">2016 research paper submitted</a> to the Department of Psychology at the State University of New York at New Paltz, downward counterfactual thinking in regards to romantic relationships was associated with relatively positive relationship outcomes. Interestingly, women were more likely than men to engage in downward counterfactual thinking about their romantic life. </p> <p><strong>Upward counterfactual thinking can have some benefits in certain scenarios. </strong></p><p>When we look back after a failed test and think "I wish I would have studied more" - this motivates us to study harder the next time a test comes up. In this way, upward counterfactual thinking (or the negative version of "what if") can actually benefit us. </p> <p><strong>This can be difficult, though, because much of the time upward counterfactual thinking is more associated with a pessimistic outlook that can be unmotivating. </strong></p> <p>Thinking in the past tense can be motivational (and even healthy) at times, but the best thing to do is look forward. </p><p>While counterfactual thinking as a whole can be used to motivate us to make better choices or appreciate where we are in life, <a href="https://www.psychologytoday.com/us/blog/darwins-subterranean-world/201809/the-psychology-what-if" target="_blank">this Psychology Today</a> article suggests that we should come up with ways to move on and focus on the present and the future instead of the past. Using counterfactual thinking as a motivational tool can be very helpful if we don't get stuck in the "what if" mindset that tends to pull us out of the present and back into the past, where things will always remain the same. </p>