Anyone got the full text of this?

In Prospect.

Ah, it’s just an email sign up.

Nice piece. As they say, most economics is about why and where the world deviates from those simple models. Thus to moan about the simple models is to miss the entire point.

10 comments on “Anyone got the full text of this?

  1. There are at least two common criticisms of Economics.

    (i) However interesting and successful Microeconomics may be, Macroeconomics is probably a pile – or rather several piles – of junk. One line of evidence for this is the routine inability of economists to make useful forecasts.

    (ii) The usual heap of prejudice, stupidity, and ignorance sponsored by the Guardian, the Beeb, and the like.

    Put aside (ii) and consider (i). I put it to you, members of the jury, that if a seriously clever bloke such as Maynard Keynes couldn’t construct a successful macroeconomics, it’s likely to be beyond the powers of his less able successors.

    Is there anyone worth reading from the last half century, apart from Hayek?

  2. Was Hayek a macro economist? If the term hadn’t been sullied by applying it to Spud I’d have said he was a political economist.

  3. You are way behind the curve on this one. Larry Elliott was with Steve Keen when they Blu-tacked 33 theses (about the corrupted state of Economics) on the doors of the London School of Economics to commemorate Luther’s protest about the mind numbing orthodoxy of his day.
    I presume you will rush to defend all that they find fault with, if you ever get round to reading what they wrote.
    Alternatively , you might campaign to have the theses expanded to include a demand for LVT to stop new wealth just putting up land and property prices, as Henry George warned all those years ago in “Progress and Poverty” = commercial Progress puts up land and property prices resulting in Poverty.(In line with your rarely mentioned support for LVT.)
    Thought you wouldn’t.

  4. “the routine inability of economists to make useful forecasts”
    -Rent controls reduce the supply of housing
    -Transaction taxes don’t raise money
    -Politicising the increases in the minimum wage ( as opposed to leaving it to the low pay commission ) will result in the employment rate falling back a little in the next year
    -40% increases in the price of irish cheddar as claimed in a parliamentary committee yesterday is bollockios
    -comparative advantage is the reason I have a job when there are plenty of people who could be better at it
    Not all forecasts admittedly, but useful to know, imv of course

  5. “Not all forecasts admittedly …”: nor Macroeconomics either. All Microeconomics in the Tradition of Smith and Ricardo, and their followers.

  6. “Thus to moan about the simple models is to miss the entire point.“

    Yep

    And this is the same way into thinking why Behavioural Economics is bollocks. Economic models are useful devices for examining how the world might work but we all know that these models need to make simplifying assumptions. The behavioural economists see humans not acting in line with these models and decide to intervene to make them. Tragic.

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