It takes a high I.Q. and lots of hard work to get a PHD in economics, especially from an Ivy League School. Yet a third grader with common sense could debunk almost anything that comes of their mouths in thirty seconds are less.
Economic models and forecasts fail for the same reason chain letters fail. Erroneous assumptions are made about human behavior and character. Also, provisions are never made as to new incentives that will be created and old incentives that will be destroyed. Government is always assumed to make economic decision when it is impossible to for it do so. Does self interest disappear when government takes on a task? Only in the minds of learned economists do government agents work towards the best interests of ordinary citizens.
Fantasy is a major cause of happiness. Some fantasies continue throughout life without interruption. Those that deal with money and survival cause great sadness when they collide with reality and cause misery and poverty. Where there are fantasies about economics, there is always a reckoning day and a sad ending.
There is nothing ignorant about the American Public. Most work to many hours and have too much responsibility to keep up with the numerous ways they lose money due to economic policy. Still, there will be great distress when average folks discover just how much Quantitative Easing has cost them. The price has not yet been paid.
As a political initiative Quantitative easing has been successful in transferring massive wealth from the politically naïve to the politically powerful. As an economic initiative it has destroyed the economy.
How the Economy Got to Where it is Today
New Music For The Hard Times Coming