tag:blogger.com,1999:blog-7905515.post4312280178265929297..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: Macroeconomist Phelps States Macroeconomics ProgressingEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7905515.post-59334367111837056112010-03-01T14:05:34.964-06:002010-03-01T14:05:34.964-06:00Macro-econ is a complete fraud, it is a reversal o...Macro-econ is a complete fraud, it is a reversal of cause and effect and based on collectivism. Economy wide measures (e.g. GDP) are a result of freely acting agents not govt policy and make no sense apart from voluntary trade. One can see this by imagining the govt outlaws stop signs and street lights... we would have 100% employment overnight and GDP would rise dramatically as we pay people to hold stop signs and guide traffic through intersections but we would be much worse off economically despite macro-stats improving. This is the fact ignored and buried in the piles of papers, rationalizations and models of macro-econ.<br /><br />Macro is a rationalization for govt interference in the economy, i.e., increased political power over producers. This approach did not start with Keynes but he institutionalized it. Krugman continues the scam but he is getting a bit testy because the internet will put an end to this fraud and he is smart enough to know it. I will make a prediction that Krugman (if he hasn't already) will come out in support of regulating or controlling free speech on the internet.<br /><br />Finally, there is really only two branches to economics. Economic principles (e.g. supply and demand, marginal utility, comparative advantage, etc) and the application to specific areas such as the firm, consumers, trade, etc. And monetary (and price) theory. Both branches are *normative*, contrary to what is currently taught in econ, i.e., if you love living as a human, values, production, science and wealth these are the principles of production one *should* follow.Anonymousnoreply@blogger.com