Posted on 07/03/2010 6:43:19 AM PDT by 1rudeboy
In this essay, I argue that neither non-economist bloggers, nor economists who portray economics —especially macroeconomic policy— as a simple enterprise with clear conclusions, are likely to contibute any insight to discussion of economics and, as a result, should be ignored by an open-minded lay public.The following is a letter to open-minded consumers of the economics blogosphere. In the wake of the recent financial crisis, bloggers seem unable to resist commentating routinely about economic events. It may always have been thus, but in recent times, the manifold dimensions of the financial crisis and associated recession have given fillip to something bigger than a cottage industry. Examples include Matt Yglesias, John Stossel, Robert Samuelson, and Robert Reich. In what follows I will argue that it is exceedingly unlikely that these authors have anything interesting to say about economic policy. This sounds mean-spirited, but it’s not meant to be, and I’ll explain why.
Before I continue, here’s who I am: The relevant fact is that I work as a rank-and-file PhD economist operating within a central banking system. I have contributed no earth-shaking ideas to Economics and work fundamentally as a worker bee chipping away with known tools at portions of larger problems. It is precisely from this low-level vantage point that I am totally puzzled by the willingness of many who fearlessly and breathlessly opine about economics, especially macroeconomic policy. Deficits, short-term interest rate targets, sovereign debt are all chewed over with a level of self-assuredness that only someone who doesn’t know more could. The list of those exhibiting this zest also includes, in addition to those mentioned above, some who might know better. They are the patron saints of the “Macroeconomic Policy is Easy: Only Idiots Don’t Think So” movement: Paul Krugman and Brad Delong. Either of these men will assure their readers that it’s all really very simple (and may even be found in Keynes’ writings). Lastly, before you dismiss me as a right- or left-winger, I am not. I’m simply less comfortable with ex cathedra pronouncements and speculations than the people I have named. [footnote omitted]
The main problem is that economics, and certainly macroeconomics is not, by any reasonable measure, simple. Macroeconomics is most narrowly concerned with the tracing of individual actions into aggregate outcomes, and most fatally attractive to bloggers: vice versa. What makes macroeconomics very complicated is that economic actors... act. Firms think about how to make profits, households think about how to budget their resources. And both sets of actors forecast. They must. One has to take a view on one’s future income, health, and familial obligations to think about what to set aside for retirement, how much life insurance to buy, and so on. Of course, all parties may be terrible at forecasting, that’s certainly a possibility, but that’s not the issue. Even if one wanted to think of all economic actors as foolish and purposeless organisms making utterly random choices, one must accept that their decisions will still affect, and be affected by what others do. The finitude of resources ensures this “accounting” reality.
[excerpted]
Scripture quotations in 10 . . . 9 . . . 8 . . . 7 . . . .
Still spreading that fake quote? LOL!
No doubt...just realize that LB actually worked at one of those mortgage companies that ripped off all the “wittle people” and now he has a mighty guilty conscience. He might even post his “good job LB” letter if we’re lucky (gee, hope not). Classic case of projection.
I don’t know what to say other than, he’s not well.
Independence Day choices...spread a fake quote about Greenspan or celebrate Hugo’s seizure of oil rigs...tough choices over at LB’s house...could be the pirates.
Economics are a way for economists to gain employment.
Other than the obvious supply and demand factors, economists haven’t the slightest clue what will happen.
Poor 10Ring Circus.
He’s got 1 ring for each IQ point - and 6 to spare.
Happy Independence Day (belated) to you too LB!
You’re one to talk about Red Sash cowboys, when your first contribution to this thread was to visit a deathwish on the author. Is that why I bother you so? Because you’re the punk?
But, then you’re the one who actually worked at Ameriquest and used your talents to cook fico scores, right? Seems like you’re the one with the red sash, bud. Someday, you’ll get a grip...or maybe not.
>>But, then you’re the one who actually worked at Ameriquest
Argent Mortgage, Actually; and when I discovered that thousands of FICO scores were being falsified by Argent, I notified the appropriate Federal authorities.
There were a number of folks who worked within Argent to plug the systemic loopholes that were being exploited. Oddly, none of them were among H1B endentured serv... err.. employees the industry utilized to effect its fraud - whilst dangling their feet over the Indian Caste system.
What would you have done, Circus?
Which Federal Authorities? Be specific.
I'll leave you to ponder the voices in your head. Keep washing your hands, posting fake quotes about Greenspan and making death wishes on folks...it really adds to your credibility.
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