Thursday, September 3, 2009
Now THIS is Interesting
9 comments:
- J said...
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- September 4, 2009 at 10:48 AM
- J said...
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One of DeLong's better rants. BdL might do better sticking with econ. history and political issues (like health care), instead of yield curves on t-bonds or whatnot.
- September 4, 2009 at 10:59 AM
- Jazzbumpa said...
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Hmmm -
So it's dangerous for economists to tread into the dangerous waters of finance?
I guess I can see that.
Cheers! - September 4, 2009 at 1:00 PM
- J said...
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- September 4, 2009 at 1:24 PM
- J said...
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Health care seems important in a way the t-bond market isn't (though that may sound too humanist for pro. economists).
The modern economist tends to work for finance either way--though when it comes to like laying bets (say in stocks, bonds, futures, etc), he doesn't have any special insights above ordinary schmoes, really. I would want to see his score card (ie accurate forecasting of some type) before I listen to him over some trader in KC.
Economics, even theyhigh-powered statistical sort, consists mainly of rules of thumb and helpful generalizations. At times they apply. Other times they don't. Really, I think it's sort of fancy sociology, with all sorts of built-in assumptions.
--even Keynes questioned the Rational Man Standard,did he not.
Maybe base Econ. 101 on the Irrational Man Standard - September 4, 2009 at 1:26 PM
- J said...
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'scuzi f-ed up editing. No caffiene yet.
(I opted for history over econ., though have read a fair amount, and now realize how flimsy it is as a discipline...Even Galbraith had his doubts about Macro-Econ) - September 4, 2009 at 1:30 PM
- Jazzbumpa said...
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Actually, I think Keynes utterly destroyed the rational man theory - something the Chicago school forgot to remember. But they are just a bunch of tools, anyway.
Here is an interesting article by Krugman that I've only read part of, so far.
http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html?pagewanted=2&_r=1
JzB - September 4, 2009 at 1:46 PM
- J said...
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- September 4, 2009 at 2:59 PM
- J said...
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Uni. of Chicago serves as the headquarters for American finance capitalism, or somethin' like that. Usury, Inc.
Having read a bit in the history of economics, I am convinced it was a WASP racket from its inception with Smith--a palsie of that scoundrel David Hume. (Hume himself wrote on economic issues, following in the Edward Teach school, for the most part).
Actually Smith-o-nomics might work in villages, or small cities. It means little or nothing in the age of Walmart.
I find Keynes-speak fairly nauseating as well, especially when he starts insisting that po' folks and workers save up their shekels for a rainy day, more or less.
Veblen actually seems sort of relevant. He perceives (I think correctly) a certain anthropological aspect to "economics"--even Darwinian at times, which is not too rational. He Veblen vs Marx. - September 4, 2009 at 3:03 PM
But it does cast an interesting light on the Clinton Presidency, and the Perot candidacy.
Taken from the comments to DeLong's post on why health care reform couldn't pass on Clinton's watch.
Sad stories, both, and in every possible way.