The Downfall of Economics

Two outstanding articles for those who want to understand how economics slipped to its dismal state. Both illustrate the wisdom and prescience of President Eisenhower who said in his farewell address:  “The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present – and is gravely to be regarded.”

Math jocks flying like crazed moths around the lamp post

by Greg Ransom

David Colander on how the National Science Foundation bankrolled the pseudo-scientific climate which made the Bush/Obama depression inevitable.

But let’s not also forget how the Federal Reserve has bought and paid for exactly the “scientific” community it wants.

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1 Comment

  1. My take away from the Colander piece is that he is infected with the same disease the others are. Specifically, he suffers from the inability to even remotely upset those who would provide bread and butter for him (the National Science Foundation, the nice and smart Congressmen he is talking to, etc.).

    He does note that funding is critical in the screw up; but he seems to imply that we missed the depression by sound judgment from government and economists. I for one hardly believe this thing is over, or even that we won’t look back on this as a depression.

    Also, sure, it’s all about the funding; but he states that we should just maintain the funding the way it is (i.e., NSF controlled) with some superficial tweaks an interested party suggests (i.e., him, Colander). What was the Einstein definition of experimental insanity? To paraphrase, it’s repeating an experiment yet expecting a different outcome. For example, dropping a pen then expecting it to hit the ceiling when ever other time it hits the floor or table top. It seems to me that economics is clinically as well as experimentally insane. There seems to be an easy first step here: (1) try something else, and/or (2) stop doing the same thing and expecting a different outcome.

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