My Two-Cents' Worth

Not to knock the awarding of the Nobel Prize for Economics to the two Americans, but it seems rather awkward, given the state of the U.S. economy. Maybe this is the reason why one of them rushed to make it clear that their work has no short-term practical application. Well, Obama would surely need some ideas to improve things, so I guess he will have to turn to somebody else for that. Ironically, the work for which they have been honored has to do with the effect of government policies on the economy and vice versa, which, quite frankly, is a relationship that shouldn't surprise anyone.

Although I majored in economics some 40 years ago before studying law, I don't claim to be an economist. Nevertheless, I do have a working knowledge of  the matter, and I always felt that a lot of it has to do with, on the one hand, common sense and, on the other hand, questionable assumptions about real-life decisions. Too much emphasis on mathematical formulas and models very often obscures the behavioral aspects of human beings as consumers and other participants in the economy. Maybe this is why so much "knowledge" has done very little to fix the economic mess the U.S. and the rest of the world are in.

Comments

Post a Comment

Popular posts from this blog

Belgian Buggery

The Catholic Church's sex abuse scandal won't go away; instead, it keeps growing every day.  Take the story out of Belgium, where a report has been issued that details what went on, including more than a dozen suicides linked to the abuse perpetrated by priests and  a cover up that continues to this day, when a Belgian bishop suggested that a complaint be withheld until 2011, when the bishop who covered up for the offending priest will retire.  With each passing day, it becomes more and more difficult to hold that this behavior was just the work of a few rogue priests.  There are just too many cases all around the world, for anyone to believe such a thing. This is clearly a major problem which the church tried to hide from the authorities and recklessly let it continue, without any regard for children elsewhere, by transferring priests.  There is no excuse for this unpardonable sin.
Read more

Hear, Hear!

Not that it means a whole lot, but, still, the gesture has some significance. After 33 years on the throne, the Dutch queen, at 76, will abdicate in favor of her son. Not subject to election by the vote of her people, she has done the right thing by resigning, so to speak, and letting her son carry on with the royal duties. At 86, and 60 years on the throne, Queen Elizabeth would do well to follow this example. Hanging on to the throne at her age and after so many years seems excessive and ungenerous. The same goes for King Juan Carlos, who has just turned 75, and has been on the throne for 37 years. His son will be 45 two days from now, so is already older than his father was when he became King. In Juan Carlos' case, he has, of late, given signs of poor judgment, that could very well be a result of his age. Queen Elizabeth and King Juan Carlos should follow Queen Beatrix 's example.
Read more

Chinese Capitalism

The fact that Asia now boasts of having the biggest number of millionaires in the world is a sign of the times. The predictions of a few years ago have come true: China is the world's next superpower, and the increasing wealth of its economic elite shows it. The sleeping dragon has awakened.
Read more