As a method of economic analysis econometrics is a childish play with figures that does not contribute anything to the elucidation of the problems of economic reality.
-Ludwig von Mises, The Ultimate Foundation of Economic Science
These kids think the methodology of economics is the same as it is for physics.
-RW
It is great to once again see RW recommend Hayek's monumental book. As great as the gains that libertarianism has made since Ron Paul's 2008 campaign, Hayek still remains largely ignored by the libertarian world which tends to see government wrongs as the outcome of "evil" politicians, instead of massive ignorance and a more complex evolutionary process. Hayek's The Counter-Revolution of Science has a shockingly low 1,892,085 amazon salesrank :( Let's hope things change soon
ReplyDeleteI mean high salesrank... I'm guessing is sales a copy per month :(
DeleteI hate the 'progressive' music in the background. Every commercial now has that lame-ass cutesy style of music.
ReplyDeletewow what a horrible way to get students interested in economics. Just show them a Friedman speech instead. Lesson of the Pencil, anyone?
ReplyDeleteIf by Friedman you mean Milton, he is definitely not the answer. He was a hard core econometrician. The Lesson of the Pencil idea was authored by Leonard Read as "I Pencil." Another good story was authored earlier by Napoleon Hill which could be called The Miracle of Breakfast in NYC (the story is in his book Think and Grow Rich),
DeleteI knew I would get flack for liking good ol' Milton. While I may not agree with his processes, etc, he is a great speaker. Definitely one of the best at taking concepts in economics and making them accessible to a wide audience (taking Read's essay and making it into a speech). It was Milton who got me into economics and it was because of him that I chose to obtain a degree in the field. Now, though, I know his flaws and all that, and am on the Austrian side for the most part. But I'll always have a soft spot for him.
Deletemilton friedman was one of the best expositors of the benefits of free-market capitalism to ever live, and yet ANY economist who isn't Murray Rothbard (except Mises, ....Hayek maybe)is inevitably panned as a tool of the mainstream establishment. If Friedman were alive today, fellows, I think we'd still want him on our side describing capitalism to the clueless public, even if his economic methodology and view on monetary policy isn't up to the perfect Rothbardian apedx......WHAT GOOD DOES IT DO TO RIP ECONOMISTS LIKE FRIEDMAN WHO ARE SO MUCH CLOSER TO OUR SIDE THAN 95% OF THE KEYNESIAN PIN-HEADS???
DeleteSounds to me as if they all fancy themselves a modern day "Hari Seldon'", using mathematics to see the future.
ReplyDeleteSilly!
I'm sure Hayek's book offers a good lesson but I think these people need something more basic. They should read the following statement every morning until its wisdom is clear to them: First do no harm. Also, a reading of Abhinandan Mallick's essay on The Law of Association could show them the logic and beauty of economics with a few simple price ratios.
ReplyDelete