…charges J. Moromisato, a Candidate for US Senator.
Economists, the supposed experts on how the economy works, are really as clueless as anybody; and we are finding this the hard way.
Denver, CO – October 25, 2010 —
This is the first of a two-part statement by J. Moromisato.
It’s the Economics, Stupid (I).
Bill Clinton had it wrong, it was never about the economy but about economics—our understanding of economy. The disease affecting the developed world economies is economic ignorance.
Who tell us,
To cut taxes on the super-rich?
To pay interests on bank reserves?
To allow banks the privilege of creating the money of the land?
To allow our devastating trade deficits?
The economists, of course! They, the supposed experts on how the economy works, are really as clueless as anybody. We, and the rest of the developed world, are finding this the hard way.
In a recent NY Times piece, “The X Factor of Economics: People” 10/16/2010, A Nobel Laureate in Economics is quoted as telling his students to “never sound more certain than you are.” Economists have much to be humble about.
Other ‘gems’ from economists’ wisdom trove are what they agree on: Tariff and import quotas (bad). That is why we have a trade deficit approaching $1 trillion, and have already sent over $5 trillion abroad, oblivious to the existential threat that might pose if it were to concentrate in the wrong hands.
Economists also agree on flexible floating exchange rates (very good). The Chinese must be tickled to dead to hear this, sitting on their near $3 trillion in monetary reserves.
And in his recent book, another Nobel Laureate, writes, referring to his ‘other’ colleagues’, “Not only was their advise flawed; they failed in their basic tasks of prediction and forecasting.” He is certainly wrong; the basic tasks of any science are rather understanding and explaining, at both of which economists have proven themselves inept.
One of the greatest economists of the 20th century, John M. Keynes, dared to predict, in the midst of the Great Depression (1930s), that within a hundred years thence the economic problem may be solved, meaning that the struggle for existence would be over, for everybody. He admonished us to “…Do not let us overestimate the importance of the economic problem, or sacrifice to its supposed necessities other matters of greater and more permanent significance. It should be a matter of specialists—like dentistry.” And he ended with, “If economists could manage to get themselves thought of as humble, competent people, on a level with dentists, that would be splendid”
Keynes was right about the importance of economics, especially now when the struggle for existence rages on without respite—not for all, that is true. But he over-estimated the competence of his colleagues. Economists are not as competent as dentists, or any other professional for that matter; I would guess they are as sought-after as card readers or fortune tellers, and some people even believe in what they have to say.
That is a great pity, because we need Economics more than ever, in order to solve the tremendous problems we are facing today, and to prevent them from reoccurring.
What we need, in short, is a thorough reform of Economics.
(Part 1 of 2)
(Visit www.EconomicsReform.com for more details)
About J. Moromisato
Born in Lima, Peru, J. Moromisato became an American citizen in 1985. He has a doctorate in high energy physics and worked as teacher and researcher until December 2004. Shortly before retiring, he returned to graduate school to obtain a master’s in economics. A Denver resident, Moromisato is the author of The Origin of Wealth and Poverty (2007), The Coming Age of Freed Money (2010). And The Denver Plan to End Unemployment (Oct 2010).