Re: social science sort of counts... economics gets a nobel prize, that means something, right?

Posted by Andy™ on Jun 17, 2003 at 13:05
(152.31.228.13)

Re: social science sort of counts... economics gets a nobel prize, that means something, right? (Uncle Al)

Your name wouldn't be Al Decker, the pie throwing guy, would it? Got a little press time back in '98 by custardizing Friedman's face after saying "it's a good day to pie"? =-P
I think you might be mixing up some old data, but Friedman predicted the problems of Keynesian economics that came true in the '70s. He was then the economist advisor for Nixon, and Regan. The downfall of the economy in the '70s wasn't the fault of Friedman. He didn't even become popular until his predictions came true in 1970. He wasn't a supporter of the Keynesian policies that lead to that big slump in the business cycle. Milton Friedman claimed the Nobel Prize for spotting deficit induced inflation as the cause for the 1974 -1975 devastation of the national income. By the 80's, Reagan (advised by Friedman) launched supply-side policies and massive tax cuts, working in tandum to pour money back into the hands of businesses and spenders so the massive under-employment problems (both in capital and in people) could be solved. Naturally, new capital goods aren't going to be made again until the businesses are utilizing all of their un-productive inventories and capital, and durable goods wouldn't become heavily-produced right away, because these things take time... I just noticed I was rambling, so I'll put a period here and change paragraphs.

I'm surprised your not throwing rocks at Greenspan, who was the head of Pres. Ford's council of economic advisors during the worst part of the 70's business cycle. If you're looking to blame one or two people for a nation-wide recession, that is.
Hey! When in doubt, blame the president! Maybe you should turn your crosshairs on Ford and Nixon. =D

The morality/stupidity level of an economist aside, the theory is sound. Also, the politics of an economist are also a part of the equation, because there are very very conservative ways of fighting inflation and very very liberal ways of fighting inflation and both work.

On another note, predicting the stock market based on previous year stock market data isn't what macro-economists do.

In other words, comparing Gross Domestic Product = National Income + Depreciation + indirect business taxes to ring a bell to see what a rat does a thousand times and then apply that to human nature is jus' plain Silleh.

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