from The Daily Bell:
How Economists Can Stay Relevant Under Trump … Economists are going to have to approach things a bit differently if they want to stay relevant in the Trump age. Political economy research is going to become more important. Some humility wouldn’t hurt. And they should look someplace other than the federal government to test their ideas. This is what I took away from this past weekend’s American Economic Association’s annual conference, where I heard a panel with five Nobel-winning economists on the topic of “Where is the world economy headed?” – Bloomberg
God willing, they can’t. Economics, as a profession is part of central banking. Almost no economics, with the exception of Austrian economics rejects central banking.
But economics as a part of central banking includes price fixing. Whenever central bankers meet they fix short term interest rates as a matter of course. Short term rates then influence longer term rates.
Price fixing itself is not endorsed by economics. It is a contradiction because economics as a profession seeking to create an environment where economics can go to work effectively. Every price fix tears down the functioning of economics.
One lesson of Trump’s election is that technocracy — the idea that wise, expert leaders should steer policy for the good of all — is out of favor. Economists may still be the toast of the American and British elite, but that elite has been sidelined by a populist wave.
Free trade, although not the most important issue facing the country, was a hugely symbolic battle. The elite, supported by the vast majority of the econ profession, took the virtues of free trade as a given; the general public disagreed vehemently with the expert consensus.
The eventual victory of the populists has caused many economists to question whether the public will listen to them again in their lifetimes.
This is another reason why economics should severely restrain itself as a profession. (And possibly go out business.) Economics has encouraged technocracy, the regime of the few making decisions for the many.
Read more @ The Daily Bell: