The bang-your-head-against-a-wall theory of economic policy

I’m in the middle of writing a paper on Classical Economic Theory which has as its central theme how near impossible for someone educated within one school of economic thought to understand another. My own belief is that one can only understand an economic theory if one actually has at some stage thought it was valid.

But on the larger question whether economic theory can help us understand what to do, it is an unambiguous yes, if it’s classical economic theory, and for the most part if it’s Austrian. Otherwise, forget it. Modern economics is basically a bang-your-head-against-a-wall-theory because it feels so good when you stop.

This book has just come to my attention. I have highlighted two bits from the ad which make me very suspicious that she might really be able to help out any of us with much of anything at all.

Questions:

(1) What do the ideas of Karl Marx tell us about the likely future for the Chinese economy?

(2) With globalization in trouble, what can we learn about handling Brexit and Trumpism?

Answers:

(1) The more they pay attention to Marx, the worse their economic outcomes will be.

(2) If you are wondering how to “handle” Brexit and the economics of Donald Trump, you are already demonstrably incapable of understanding their natures or how and why they will improve things.

Anyway, here is the ad for the book. History of Economics is always worth a look, and you have to start somewhere, although if you want my advice, where to start is with this one. Meanwhile, there is this:

Front Cover

Since the days of Adam Smith, economists have grappled with a series of familiar problems – but often their ideas are hard to digest, even before we try to apply them to today’s issues. Linda Yueh is renowned for her combination of erudition, as an accomplished economist herself, and accessibility, as a leading writer and broadcaster in this field. In The Great Economists she explains the key thoughts of history’s greatest economists, how our lives have been influenced by their ideas and how they could help us with the policy challenges that we face today.

In the light of current economic problems, and in particular growth, Yueh explores the thoughts of economists from Adam Smith and David Ricardo to recent academics Douglass North and Robert Solow. She asks, for example, what do the ideas of Karl Marx tell us about the likely future for the Chinese economy? How do the ideas of John Maynard Keynes, who argued for government spending to create full employment, help us think about state intervention? And with globalization in trouble, what can we learn about handling Brexit and Trumpism?

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