Recession fears spooked investors this week, but this is what a soft landing should look like

As a professor of business economics, I beg everyone, from investors to consumers to policymakers: Please calm down, take 10 deep breaths, and relax.

What a difference a job report makes. Earlier in the summer, people were worried that the economy was too hot. But now—in response mainly to weaker-than-expected employment data released on August 2—stocks are plunging. Some analysts even worry that a recession could be on the horizon.