Heard on the radio in passing:
What is good economics is bad in politics, and what is good in politics is bad in economics.
Just so.
and Feel free to forward this by email to three of your friends.
What is good economics is bad in politics, and what is good in politics is bad in economics.
Just so.
and Feel free to forward this by email to three of your friends.
3 comments:
The problem with economists today is that the field is too intertwined (or outright "polluted") with politics, which can be very detrimental in understanding how economics and financial systems really work. A lot of economists, including academics, the CNBC talking heads, and media-appointed "experts" simply do not understand how the economic system really functions.
Some economists get their observations and facts correct, but then screw up with regards to their interpretations and proposed solutions that are driven by their politics, left or right, which are often wrong and counterproductive - which can result in just making things worse.
Another problematic factor in debating and understanding economic issues is "confirmation bias" - people seek out and only see information that supports their view of how they think economics works, which can be wrong, and reject or just ignore (consciously or unconsciously) information or facts that actually supports a different view on how economics actually functions. Again, I think one's politics has an immense influential impact on how they view economics, how it works, and solutions. This bias is a big reason why the economic system in America is so screwed up - a lot of people (many influential, as indicated in the previous posts above, including politicians) really just don't know what they are talking about.
And read Nassim Taleb on "Fooled By Randomness" for and excellent explication of "survivorship bias." Well worth the price of admission. Makes one think differently of Warren Buffett.
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