Tuesday, February 05, 2013

why economists get things wrong

This video from Irish economist, broadcaster and author David McWilliams opens with this observation - is it not ridiculous that we should be listening to the economic 'forecasts' from those very same experts who, of course, completely failed to forecast the current crisis coming in the first place?

The core issue being neglected by the 'experts' that as soon as humans are involved (ie always) then standard economic theory goes out the window, and all kinds of foibles and biases come into play.

McWilliams' own flavour of behavioural economics influenced analysis is labelled Punk Economics and this clip is part of a series of films under the same banner. All of which are ably illustrated by Mark Flood and can be viewed via their YouTube channel.

David says 'Economics and economic analysis has become similarly overblown and self-indulgent. Worse still, many (not all) economists have failed to make it simple, easy and comprehensible for the vast majority of people, something economics must be, if it’s to be of any use to us.'

blog comments powered by Disqus