30 Jun 2010

Economists Winning Hearts and Minds, Again

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I have diversified into other occupations because I think within the next three years the public will start lynching economists. For example, take this CNBC story:

The US unemployment rate could start falling later this summer, but not necessarily for the right reasons.

Economists say the Senate’s rejection last week of yet another extension of jobless benefits could actually cause more people to quit looking for work, adding to the already record high numbers that have left the labor force since the economic downturn began in 2007.

It could also further slow the economic recovery because of the loss of income for the millions of American who have been receiving jobless benefits.

Let’s put aside the Keynesian garbage, and consider the fact that the way our system is currently set up–and economists definitely played a large role in this–when people give up on looking for work, the unemployment rate goes down.

If this were a little quirk that got a one-sentence mention, OK fair enough. But it is the foundation of the entire news story.

In contrast, the possibility that ceasing to pay people who don’t have jobs, might actually cause some of them to get a job, receives one sentence in the article. (Really, go look.)

Actually I think the public will lynch economists and financial reporters.

One Response to “Economists Winning Hearts and Minds, Again”

  1. Michael Suede says:

    Come on now Bob, we all know the government will protect its economists with totalitarian police powers.

    I’m surprised you reject history here.

    One can not operate a fascist oligarchy without proper pseudo-scientific backing.

    However, it looks like Goldman executives are taking heed of your warning anyways.


    “I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.