On Tue, 2009-01-13 at 14:58 -0800, David B. Shemano wrote:
> While I am writing, to those of you complaining about the bankruptcy
> of the economics professions for failing to forsee the events of 2008,
> what conclusion are you drawing?  The conclusion that I draw is that
> if thousands of very smart people devoted to understanding our economy
> couldn't accurately predict what was going to occur, 

Why do you think economists are devoted to understanding our economy?

If they're rational and smart they know that economics has no 
predictive power whatsoever so they will instead sell their current
influence on politicians to interest groups who pay the highest price.

> why do we think a few dozen government officials could do any
> better?  

Overall government official incentives are less skewed than economists
incentives, so more of them will have some care for the general
interest.

Laurent


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