In 1996, my first year on Wall Street, the New York Times…
““In 1996, my first year on Wall Street, the New York Times wrote a story pointing out that IBM, which had employed more than two dozen in-house economists in the 1970s and ’80s, had canned them all. Many other major corporations like General Electric had done the same, preferring to use commercial services. Why? Because high-paid economists’ predictions were unreliable.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Corporate reliance on external economic forecasts grew as internal economists proved unreliable, prompting firms to outsource predictions.
In simple terms: Companies stopped using in‑house economists because they were inaccurate.
Key Takeaway
Rethink reliance on costly forecasts.
Themes
business
economics
risk management
Mood
analytical
skeptical
Type
practical
critical
When to use this quote
- investment decisions
- budget planning
- strategic hiring
Key Concepts
forecasting
outsourcing
prediction reliability
Questions to Reflect On
- What alternatives exist to improve forecast accuracy?
- How can firms balance cost and insight?
A Different Perspective
Outsourcing may reduce internal expertise.