The social sciences are just opinion dressed up as evidence-based theory. From something just sent to me, although published in the middle of December: Reform the economic system now or the populists will do it: The interests of the financial sector and the economy at large are different.

Direct inflation targeting is common today, but was unknown before the 1990s. Medium-term fiscal policy targets are also a modern invention, as are independent fiscal councils. Behind these institutions and policies lie a theoretical foundation — new Keynesian macroeconomics. John Maynard Keynes himself would probably characterise its average proponent as “a defunct economist”.

The theory asserts three key points. One, that a low rate of inflation is consistent with full employment, so it is sufficient for a central bank to target a low rate of inflation. Two, that fiscal policy should not be used for economic fine-tuning but should follow medium-term stability targets. And three, that neither monetary nor fiscal policy make a difference in the long run.

But as he says, there is a problem:

While the case for a challenge of the macroeconomic policy doctrine is overwhelming, I doubt the western policy establishment will do it. As happened during the financial crisis, vested interests will intervene. The macroeconomists who designed the models are the gatekeepers and the beneficiaries of the system. They are the independent central bankers. They are running the independent fiscal councils. Some are finance ministers.

If economists cannot tell that Obama along with the rest of these mad spenders have left our economies a wreck, it must only be because they are so cossetted from any actual economic problems that they are impervious to just about anything. Real living standards for a large part of the population are falling – tried to buy a house lately on an average income? – but they not only cannot explain it, they cannot even see it.

From MD in the comments to the previous post:

There are some new expressions we will see used frequently this year and we need to understand them:

fake news = news from non-leftist sources that give voice to the silent majority;

populism = a majority of the population rejecting the self-indulgent agenda the Left want to impose on everyone, by force if necessary;

there need to be checks and balances when the people get it wrong = we, the Left, will use the courts, international ‘law’, and the regulation-making power of the executive to force our agenda on an unwilling populace;

Australians are horrified at Trump’s victory (they actually said this on their ABC) = leftists are horrified that people are pushing back against their agenda;

Australia is the most successful multicultural society in the world (an oldie that makes regular appearances) = the Left don’t just want to vandalise our society; they want to rub our faces in it while they do it;

far-right party = a centrist party that promotes non-leftist mainstream policies;

Australia is a tolerant society = we are too afraid to express our views because of the threat of persecution by government agencies. Second, the leftist media not only will not give voice to the concerns of the community and will even go to the extreme of attempting to fabricate an alternative reality. Third, we have been cowed by government. We know we have no power and no rights so we just let them walk all over us;

This is an example of how democracy can fail = the people voted and we, the Left, did not like the result.