Despite my having left the Institute of Chartered Accountants in England and Wales, they still send me their newsletters. That involves no cost to them, so I guess they think, why not?
I was amused by this comment today:
Guess what? Neoliberal targets don't work, not least because they're utterly disconnected.
The accompanying article also noted that unemployment was at a two-year high - as if that was a surprise when that is exactly what the Bank of England wanted.
It almost makes you think their economists really should learn a bit more about the subject, and even think about it in greater depth. Would that be too much to ask? And, for the record, the ICAEW does employ people described as economists.
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Well, they might think about whether hitting the inflation target is really worth celebrating. Food, for example has gone up mouth watering amounts since 2021. If your diet consists of olive oil, dog food, baked beans, sugar, semi-skimmed milk and frozen beef burgers your shopping basket costs well over 50% more than 3 years ago. Other foods are also well up.
https://www.bbc.co.uk/news/articles/c8vvrj288djo
Seriously, economists and journalists and particularly politicians triumphantly declaring inflation is back to “normal” is simply deceitful when people are having to spend much more on many staples but without a similar increase in income or social payments to compensate. Maybe that’s why many feel worse off than a few years ago.
“Some 7.4 million UK adults are still struggling to pay bills due to the high cost of living, a survey suggests.” (by the fca)
https://www.bbc.co.uk/news/business-68765769
Might this be a classic example of “Ideological Scotoma” or theory obsessed avoidance of reality?
Might this indicate an example of giving preference to the simulation of the economy instead of the actual economy?
Might this indicate an over crystallised/rote based and insufficiently fluid education which makes the foundational error of not teaching students the attitudes and skills to always, always question?
“In theory, theory and practice are the same. In practice they are not.” (Yogi Berra)
“When my information changes, I alter my conclusions. What do you do, sir or madam?”
(John Maynard Keynes)
Good quotes
Indeed. I would add a Galbraith quote….
“Economists exist to make astrologers look good”
He was right
This economist seems to have thought about the issues.
https://www.theguardian.com/commentisfree/article/2024/jul/02/labour-plans-britain-private-finance-blackrock
Daniella Gabor is good
See also: “Private equity is predatory capitalism with a long trail of destruction”, Prem Sikka.
https://leftfootforward.org/2024/04/private-equity-is-predatory-capitalism-with-a-long-trail-of-destruction/
Neoliberal economists are like high priests in a cult. They make magical incantations involving concepts like GDP, economic growth, national debt, latter curves, rates of inflation, quantitative easing, equilibria and the FTSE 500. Many of their most devout followers have little or no idea what these concepts mean, but they do know that whatever they mean they are very important and are used to describe an ultimate reality that no politician or social reformer can escape.
Then there there is the cult’s God. It is called The Markets. Like all self respecting gods, it has various human characteristics, for instance it can approve or disapprove of things and can make decisions. Moreover it both omnipotent and omniscient and, more importantly always right.
Those who benefit most from the cult, be they true believers or not, are more than happy to fund the high priests and their institutions and to award them prizes for their wisdom and erudition.
Now tell me, if you were one of these high. priests would you want to think too deeply about your subject? You might find yourself being led into grave error, thinking heretical thoughts, abandoned by your patrons, no longer taken seriously by the cult’s hierarchy. Far better to carry on bamboozling true believers with your mystical incantations, restricting your thoughts exclusively to those that are strictly speaking necessary.
Totally agree, Bernard. Economics today bears many of the hallmarks of religious faith.
And the problem with faith is that it is utterly impervious to rational argument.
Economics is a subject about which there is a great deal of public scepticism, superstition and ignorance, even amongst politicians. Changing that perception is almost impossible, and will continue to result in the wrong policies being put in place. If change can come, it will be a slow process, probably not recognised until years later. Sorry to be a Cassandra, but that’s the truth.
I am an optimist
Change happens