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Homo economicus mortus est? (Who needs economists?)

Tuesday, 06 July 2010 20:47 Last Updated on Tuesday, 06 July 2010 20:47 Written by Eric Garland 0 Comments

Does anybody need economists?

This is the subject of a fascinating polemic raised by our colleague Gregor MacDonald. He notes, in an incredible understatement, “economists don’t ‘do’ energy.” They are content to set Keynes and Hayek in a never-ending cage match over monetarism versus free markets, while petroleum dwindles, Boomers retire, technology flattens work hierarchies – while real things are actually happening.

Some of the debate is set off by the paper embedded below by a Federal Reserve Bank economist. As the title indicates, he doesn’t think much of the input of non-specialists. We then have a similar question for his profession – how is it that we all participate in economic activity, and only you feel qualified to comment on it? And while we’re on the subject, why didn’t you predict an absurdly obvious bubble and subsequent crash?

Some things are too difficult for the laity to understand. Most of the hard sciences are really impossible to comprehend to outsiders, and news reports on their breakthroughs are often comically misunderstood. But is economics a hard science? Isn’t it a social science based around people trading things? Can we discuss our economy without the need for technocrats of this sort?

Economics is Hard

This entry was posted on Tuesday, July 6th, 2010 at 8:47 pm and is filed under Economics, leadership, Management ideas, markets, mindsets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


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