Thirty years and counting, but reasoning doesn´t change!

Maybe this “analytical calamity” comes from “price and quantity-based” reasoning.

In 1984 Alan Reynolds wrote “Mainstream Voodoo Revisited”:

The quality of public debate on economic issues is rapidly degenerating to the level of intellectual barbarism. Contradiction has become the mark of sophistication, evidence is dismissed as irrelevant, and “experts” are defined as anyone who advised the government during some economic catastrophe. Indolent journalists lean on an imaginary consensus, claiming that “most economists agree” about this or “Wall Street worries” about that.

Most economists are said to be concerned that a growing economy must raise interest rates, which will prevent the economy from growing. The solution, it seems, is for the Fed to raise interest rates to slow the economy, so that interest rates can fall and thus speed up economic growth…

And concludes

Economic policy has never before been so thoroughly dominated by ever-changing economic theories and forecasts. Economists who can’t predict the next month now propose to fine-tune the 1989 budget or the 1986 inflation rate. There is a panicky political impulse to fix things that are not broken and ruin things that were almost fixed. Always, the rationale is that “most economists agree” that “something” must be done. If economists were actually guilty of believing half of the strange ideas that are attributed to them, it would be safer to base economic policy on astrology.


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