Rational Ignorance & Irrationality

The unprecedented divide between the way that Democrats and Republicans perceive the state of the economy may be linked to two important theories in economics and political science: Rational Ignorance and Rational Irrationality. How is the U.S. economy doing?   As always, it depends on who you ask.   According to one very large group of Americans, the economy is not doing great and its prospects are pretty bleak. On the other hand, there is another very large group of Americans who are more upbeat about the economy now than they have been in a long time.    …