Richard Ebeling Dares to Call Bernanke Just a Pin-Head Academic

Over at Think Markets, Richard Ebeling reponds to a Mario Rizzo post with the following comment:

Somewhere in his book on “The Study of Sociology,” Herbert Spencer ridicules the notion that words on a piece of paper upon which there is affixed an official government stamp suddenly gives that piece of paper a special status of reverential homage.


The same seems to apply to official positions in the political regime. At Princeton, Bernanke was just another pin-head academic studying the minutia of Federal Reserve policy in the 1930s.

Elevate him to position of regal importance — and what higher position than the lead monetary central planner of the United States — and every word he speaks become divine utterances from one of the gods on Mt. Olympus.

“Pietro P” is no doubt correct that the shear importance of his decisions results in others having to pay attention to what he says and does.

But, nonetheless, there is an attitude of superior wisdom and understanding that seemingly gets bestowed from holding that majestic position in Washington, D.C., far beyond those of mortal men.

Mario’s comment, of course, is the equivalent of the boy who pointed to the emperor and said, “Look, he has no clothes.”

Most, alas, appear to to mesmerized in believing in what does not exist...

Rizzo's response to Ebeling is also noteworthy:

Richard,

I think you are right. I think people NEED to believe that someone can make it all better. But perhaps it is not so much the “man-on-the-street” who thinks this but the politicians, many economists, and especially journalists.

I think this is more of an issue for social psychology (or pathology) than anything else.