Monday, February 11, 2013

We Know with Great Certainty We Have the WRONG Policiies

There are some problems with economists.  They don't often know the right thing to do.

But we are actually pretty good about recognizing the wrong thing to do.  The problem is that policy makers are driven, in part by their own overconfidence and in part by their need to be seen as "doing SOMETHING," to do things that are clearly wrong.

Great video.  Check out John Cochrane, just after 3:45 mark.  Nicely done, Dr. Cochrane.

Nod to WH.

1 comment:

Peter McIlhon said...

I've found it interesting that while I agree that the economic growth and prosperity that has taken place over the last 60 years is IN SPITE of Keynesian policies, what makes economists think that NOW is the time that this straw will break the proverbial camel's back? I've never found gloom and doom scenarios to be very convincing - if only because the necessary happenstances to create these gloom and doom scenarios don't tend to come to fruition.