Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
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Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
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Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#2Great Depression: industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent.
In comparison 2010-2014 was a minor blip, with less than 3% GDP drop, that barely qualifies as a correction. I fear central banks have actually gotten to good at minimizing these issues as we could easily do the same thing in another 10 years, where the great depression created far more systemic change in both organizations and peoples attitude to investing and credit.
PS: People want the post correction economy to match up with the pre-recession economy. However, in the case of irrational behavior the rational economy should have a lower GDP and that's not actually a problem.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#3Great Depression: industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent. In comparison 2010-2014 was a minor blip, with less than 3% GDP drop, that barely qualifies as a correction. I fear central banks have actually gotten to good at minimizing these issues as we could easily do the same thing in another 10 years, where the great depression created far m…
Yeah, well, hold on to your hat.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#4Great Depression: industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent. In comparison 2010-2014 was a minor blip, with less than 3% GDP drop, that barely qualifies as a correction. I fear central banks have actually gotten to good at minimizing these issues as we could easily do the same thing in another 10 years, where the great depression created far m…
Yeah, well, hold on to your hat.
Japan style stagnation seems like the most likely outcome to me, what's your prediction?
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#5Great Depression: industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent. In comparison 2010-2014 was a minor blip, with less than 3% GDP drop, that barely qualifies as a correction. I fear central banks have actually gotten to good at minimizing these issues as we could easily do the same thing in another 10 years, where the great depression created far m…
Which, arguably, shows that economists were not as useless as a group over 2008-2018 as they were over 1929-1935.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#6Slap children often.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#7Because they don't take debt, in particular private debt, seriously, including Krugman and Delong.
Steve Keen explains how wrong this is.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#8Because they don't take debt, in particular private debt, seriously, including Krugman and Delong. Steve Keen explains how wrong this is.
Nobody thinks national debt doesn't matter. They think the long term costs of endemic poverty or economic stagnation outweigh the long term costs of carrying a deficit.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#9Great Depression: industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent. In comparison 2010-2014 was a minor blip, with less than 3% GDP drop, that barely qualifies as a correction. I fear central banks have actually gotten to good at minimizing these issues as we could easily do the same thing in another 10 years, where the great depression created far m…
Which, arguably, shows that economists were not as useless as a group over 2008-2018 as they were over 1929-1935.
Why not? Minimising these impacts it's about finances, not economics. I.E Economics is about predicting these things (which they absolutely didn't), finances is about putting mechanisms in place so that if they happen they will be minimised.
Re: Why Were Economists as a Group as Useless Over 2010-2014 as Over 1929-1935?
#10Because they don't take debt, in particular private debt, seriously, including Krugman and Delong. Steve Keen explains how wrong this is.
Nobody thinks national debt doesn't matter. They think the long term costs of endemic poverty or economic stagnation outweigh the long term costs of carrying a deficit.
We have this big problem. We'll just patch over it with this other problem and call that a reasonable strategy.