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Tom Forth responds to a discussion on economic modeling that suggests the U.S. economy would have grown by 12% more if San Francisco had significantly increased housing construction.
He notes that similar modeling logic could be applied to other scenarios, such as estimating that the U.S. economy would have grown by 8% more if a major company like Nvidia had reduced prices and profits. Forth highlights the role of assumptions in modeling economic outcomes.
Forth has previously commented on preliminary data suggesting a shift in regional fiscal balances, with an English region potentially leading UK fiscal deficits as a share of GVA, according to one of his earlier analyses. He has also questioned London's continued position as the main driver of the UK economy in another recent article. His recent remarks continue a pattern of scrutinizing assumptions in economic narratives.