As you know, we cannot comment upon Ritchie\’s vapourings directly.
So we\’re doing so over at Giles\’ place.
Sample comment from the blog host himself:
I must admit the argument Richard used – “The LSE doesn’t warn people off using pensions. Therefore the tax incidence can’t really matter” – is one of the worst I have read in a while. I’m sure he can’t mean it.
Oh, but he did and does.
Candidly, the theoretical economists can make al the assumptions they like to prove their case – the reality is that the world does not support their argument because in the real world the assumptions they make are simply untrue – and that’s bad economics, bad science and bad argument. It’s also a lousy basis for recommending policy.