Economics In The Modern Arena

Among the economists whom I am at odds with are college professors and government economists. Among those is the always wrong Federal Reserve Chairman Ben Bernanke. How it is that such smart people can be wrong day after day and year after year? One problem is that graduate level economics courses are economics in name only. What is really studied at these levels is actually accounting and has nothing to do with economics. Students leave college convinced that one number causes another, then go out into the real world and stumble all over themselves. Firm is the belief that if it is taught by a credentialed professor with a 165 IQ it is the gospel.
The economics taught in school applies perfectly to the fantasy system that is assumed to exist in the U.S.A. However the fantasy system leaves out important ingredients and further, has mutated and doesn’t even exist. In the real world economic decisions are not made in the way they are assumed to be made.
Conventional economic thought assumes that decisions, both private and public are made in keeping with intellect. In the real world instinctive impulses drive most political decisions and contribute greatly to economic decisions. Leaders in government are even more controlled by instinctive drives than is the general population. People have an instinctive drive to serve a master and a bias toward giving government a significant role in allocating resources. Individuals are not capable of behaving in the ways necessary for a market economy to function efficiently. I am nothing close to an expert on human instinct but just recognizing that it is a constant influence, gives me a real edge in figuring out where the economy is headed. All of the esteemed who are oblivious to the relevance of instinctive behavior in economics are completely limited.
Today the public sector accounts for a huge portion economic activity. There is a huge misunderstanding concerning why government has grown so large. Of course, because of instinctive biases, growth of government is always hard to contain but there is more. After a long time there are dynamics in a democratic system that no one anticipated. Democracy provides a stage on which the 5% or so of the population with insatiable thirsts for power can compete. In the old days a person had to be born into royalty to be a king or a queen. Today the power hungry promise to have government do things for you that you can’t do for yourself. Politicians promise to use government to take resources from groups who have no political power and give the resources to constituents who support them. The competition for power is now so intense that you are even being promised things that government cannot do.
These are the types of dynamics that are determining economic outcomes in the modern world. What a person gets with an economics degree is an abridge version of the economic arena where the most significant influences are left out. Ben Bernanke can’t do anything right not because he isn’t smart but because he isn’t looking at anything that makes a difference.

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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