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“THE LITTLE ENGINE THAT COULD” ECONOMY
Economists often characterize an economy that is in an ideal, sustainable scenario featuring moderate economic growth, low unemployment, and stable inflation as a “Goldilocks Economy” – in other words, “not too hot, not too cold.” The term is derived from the children’s story, “Goldilocks and the Three Bears.” So, how would we characterize today’s economy? Continuing with the use of children’s stories as metaphors, I would characterize today’s economy as “The Little Engine That Could” economy. “The Little Engine That Could” story is a classic children’s tale about a small locomotive that overcomes a steep mountain to deliver toys to children after larger engines refuse. The story emphasizes persistence, optimism, and self-belief through the famous mantra, “I think I can, I think I can.”
I believe you can see the point here. Today’s economy is in an OK position; but not great. It keeps struggling on, hoping to make the summit. “I think I can, I think I can,” it seems to be saying. The following is the WAP Score we use to help us assess the economy. You can find more detail at this link.
✅ Current WAP Score: 58.9%
Interpretation: Above 50% suggests optimism / expansion, below 50% suggests concern.
➡️ Signal: Expansion, but not “hot”; growth looks moderate with late-cycle slowing risk.
Note: Please see my Forbes article on assessing economic performance and the use of WAP Scores, 11 Variables That Can Help Leaders Understand How The Economy Is Doing.
Note: Artificial Intelligence (AI):
- We used AI in this current economic assessment. We decided to leave the analysis unadjusted – i.e., not adjusting the analysis from what the AI came up with, as we agree, for the most part, with the AI analysis.
- See the following link for the complete AI analysis. This analysis and the data are in raw form. They are provided for review purposes only.
Note: Output that is generated by artificial intelligence may contain errors, inaccuracies, or omissions. We have spot checked the results and they appear mostly accurate to us, particularly in the areas that would have the most significant impact in assessing the economy.
(Data as of 2/26/26)