EclectEcon (John Palmer): Economics vs Pollyanna
Too often well-meaning people who really care about the future write, "Science is not the problem; it's the misuse of science by economics that is the problem."
Sadly, they are mistaken. In fact, it is a lack of understanding of economics that is the problem.
Economics does not make people greedy, self-seeking, maximizers; economists take this type of behaviour into account only because it seems fairly prevalent. In an ideal world, it might be nice if people weren't this way; I'm not sure. But basing decisions for the future on fantasies and hopes that we all can be and will be sharing/caring people leads to really stupid policies.
Neither economics nor economists made a world of scarce resources, either; economists do nothing more than tirelessly point out the problems of scarcity and the implication that we cannot all have everything we want, including social programs and flowers in the park.
……….
The problem isn't economists, though; and it isn't economics. It is too many people succumbing to the nirvana fallacy, too many people saying, "If only people would change…. People should change. Let's tell them they should change, and let's pass laws making them change, and then let's implement kinder, gentler policies."
But despite the attempts of the well-intentioned, people don't change. Scarcity doesn't disappear. And the policies have disastrous results.
The disastrous results are all-too-frequently blamed on economics, when instead they should blamed on the implementation of policies that make no economic sense. Economics is not the problem; arrogant economic ignorance is the problem.
"…arrogant economic ignorance is the problem." Amen to this post!
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