Economists often spend time with fancy but useless mathematical models of the overall economy. Too many have been educated away from common sense, worshipping the gods of differential equations and statistical models. Some take on the qualities of an idiot savant, brilliant in esoteric and narrow areas. Their world is seen through the prism of numbers, equations and assumptions. Along the way they lose touch with the real world, forgetting that their field is a behavioral science dealing with human beings. Often their practical knowledge of the economy is less than the common man who was not robbed of his common sense and lives in the real world.
Keynesian macroeconomics is a perversion of the profession. It captures those with small minds, big ambitions and a facility for modelling. Anyone who believes themselves capable of modeling and managing a complex economy with a handful of equations is unworthy of a degree in the behavior sciences. Likewise, anyone who believes themselves capable of managing a complex economy (other people’s lives) is too arrogant to be fit for any public or private office.
Mallard Filmore, in the following cartoon, shows why macroeconomics is useless:
H/T to Jewish World Review
The basis for any study of economics is the individual. He, not aggregates, make decisions. Macroeconomics has no way to comprehend this business owner and her deliberations. These kinds of considerations cannot be modeled.