Thursday, July 16, 2009

Oh, Economics.

If you don’t know, Economics is referred to as the Dismal Science. That epitaph has long amused me. The leader in the latest Economist begins:
OF ALL the economic bubbles that have been pricked, few have burst more spectacularly than the reputation of economics itself.
The leader begins, as is often the case with the Economist, humorously and transitions into a serious, strong defense both of the utility of Economics and of the Free Market:
And if economics as a broad discipline deserves a robust defence, so does the free-market paradigm. Too many people, especially in Europe, equate mistakes made by economists with a failure of economic liberalism. Their logic seems to be that if economists got things wrong, then politicians will do better. That is a false—and dangerous—conclusion.
But simultaneously takes on financial and macro economics. It is an excellent piece, well worth a read, defending the value of the market, while being honest about its very real limitations and imperfections. It is a strange thing; normally rational, skeptical individuals so frequently place blind faith in the infallibility of the free market. It is not infallible.

Now, go read the Economist.

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