Jobs and the Federal Reserve
MARCH 6, 2015
http://www.nytimes.com/2015/03/07/opinion/jobs-and-the-federal-reserve.html?comments#permid=14344654
This is typical of the completely nonsensical chain of arguments by economists to support almost ANY position they want to argue for, even using the same supposed "data".
The ability of the Fed to influence ANYTHING, given that their supposed tool, interest rates, are already at zero, is illusory. The mantra now is that pumping Billions into the economy, via debt purchases by the Fed, will perform the miracles of raising wages. The evidence for that is ZERO
http://pensionpartners.com/blog/?p=1204
The economies of the world are flooded with essentially free money, and according to the religious matra of economics, the "Invisible Hand" should be busily distributing this resource to "maximize utility", whatever that is.
It is high time that we jettison the rediculous religion of traditional academic economics, with its dogmas of rational decision making, Invisible Hand, self-stabilizing and "optimizing" "laws". It is self-deceptive nonsense to claim that modern economics is non-normative, that it is scientific and relies only on "objective evidence", when indeed the whole notion of "utility maximization" is normative - it is asumed that "utility" is something desirable and should therefore be maximized.
It is also foolish to pretend that "economics" exists in some sort of a vacuum, with its own set of "laws" which function in an almost mythical/religious fashion via "The Invisible Hand" to somehow bring about the greatest level of "happiness" (Adam Smith) for everyone.
The ability of the Fed to influence ANYTHING, given that their supposed tool, interest rates, are already at zero, is illusory. The mantra now is that pumping Billions into the economy, via debt purchases by the Fed, will perform the miracles of raising wages. The evidence for that is ZERO
http://pensionpartners.com/blog/?p=1204
The economies of the world are flooded with essentially free money, and according to the religious matra of economics, the "Invisible Hand" should be busily distributing this resource to "maximize utility", whatever that is.
It is high time that we jettison the rediculous religion of traditional academic economics, with its dogmas of rational decision making, Invisible Hand, self-stabilizing and "optimizing" "laws". It is self-deceptive nonsense to claim that modern economics is non-normative, that it is scientific and relies only on "objective evidence", when indeed the whole notion of "utility maximization" is normative - it is asumed that "utility" is something desirable and should therefore be maximized.
It is also foolish to pretend that "economics" exists in some sort of a vacuum, with its own set of "laws" which function in an almost mythical/religious fashion via "The Invisible Hand" to somehow bring about the greatest level of "happiness" (Adam Smith) for everyone.
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