Dani Rodrik on the economists’ role in bringing about the most recent financial crisis:
In the aftermath of the financial crisis, it became fashionable for economists to decry the power of big banks. It is because politicians are in the pockets of financial interests, they said, that the regulatory environment allowed those interests to reap huge rewards at great social expense. But this argument conveniently overlooks the legitimizing role played by economists themselves. It was economists and their ideas that made it respectable for policymakers and regulators to believe that what is good for Wall Street is good for Main Street.
Economists love theories that place organized special interests at the root of all political evil. In the real world, they cannot wriggle so easily out of responsibility for the bad ideas that they have so often spawned. With influence must come accountability.
[…] Dani Rodrik [ht: kd] is right: Interests are not fixed or predetermined. They are themselves shaped by ideas – […]
[…] Dani Rodrik [ht: kd] is right: Interests are not fixed or predetermined. They are themselves shaped by ideas – […]
Alex Gheg has a new consumer theory that makes more accurate predictions and allows the measurements of previously hidden thoughts, which means we can measure utility growth. Quantity, quality, variety and convenience in one equation. http://www.youtube.com/watch?v=u6tFLGpcOpE
“With influence must come accountability” this is a key issue in Sapain and the EU right now. But noboby seems to be accountable for anything whatever the evidences/ Upton Sinclair :“It is difficult to get a man to understand something when his salary depends on his not understanding it” Quoted by Tony Judt (Ill Fares the Land, 2011)