One passage that I found particularly significant is when Wheelan explains the paradox that follows a recession. He says, "Our natural (and rational) reaction to precarious economic times is to become more cautious with our spending, which makes our collective situation worse" (Wheelan 202). When people decrease their economic activity in times of trouble, they are actually adding to the economic downfall. The result of a population's reaction to a recession may actually cause more damage than the recession itself. Wheelan explains that if people believe the economy will get worse and act accordingly, then it will get worse. And if people believe it will get better, then it will get better.
I was not aware of this concept before reading the chapter and I found it very interesting that a simple decision to spend or not to spend can have such an effect on the economy, and a reaction that seems rational can actually be quite detrimental. This idea further proves the importance of learning economics. If more people knew about the role of a population's reactions to a recession and expectations of the economy, then they could act accordingly and help prevent the economy from plummeting further.
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