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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (103556)	2/9/2009 8:39:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 542009

I am of the view one can find an economist to support just about any governmental budgetary approach one designs. It says a lot about the profession when there is no real consensus about the worst crisis to face the economy in decades; theories and speculation are all over the map as everyone lines up in their little "schools" and pounds the table for their pet ideology. The one thing the economists all have in common is virtually zero responsibility ever managing anything except their class schedule and publication dates. Perhaps in a time of crisis, we shouldn't give much sway to those who perpetually sit on the sidelines. That's how I often felt about international relations professors when I was working in embassies overseas. Different perspective from my office than their campus lecture hall.

To: Bread Upon The Water who wrote (103556)	2/9/2009 12:13:20 PM
From: JohnM	Respond to of 542009

I am of the view one can find an economist to support just about any governmental budgetary approach one designs. True of most professions. But one needs to look at major ideological cuts, in this case, the role of the state. Barro and Mankiw (and the Friedmanites) are opposed to almost all forms of state intervention in the economy; most mainstream economists are more pragmatic about it. Some among each set are more honest about data analysis than others, like most professions. My guess is Barro, who I don't know in any serious sense, just seen the name around, is reasonably committed to strong data analysis (Harvard suggests that is the case with its professional eminence) but begins with the above premise about the role of the state in the economy. So one of the things one needs to do is think through that issue. As for the argument about the multiplier effect, it's hard to keep track of the data here, but the Romer effect, often mentioned by Barro types, is from a mid 90s paper and related to a reasonably stable economic situation. She, herself, has said, very recently, that it doesn't apply to the present situation because it is anything but stable.