When it is all over, I hope to have added one term to the English language: Budgeism. It came from my interactions with the Missoula financial adviser. I began to notice over time that the bulk of his theories on economics were untestable. Yet he addressed matters with certainty – if only we did x instead of y, z would happen instead y … I shortened it to the following:
I believe my theories will work and yours will fail, in the future. Prove me wrong.
From there it’s easy to see how it works as a debate tactic. Take health care – the European systems are working well, adjusting as they must, and are not in any way threatened or unpopular. They will fail in the future. The US health care system is a colossal bust, with worse outcomes and immensely higher costs while inaccessible to a large portion of the population. In the end, it will work.*
Budgeism is useful in understanding the arguments of economists of the Randian, Austrian, or neoclassical schools. They can’t explain the past or present nor predict the future, and yet get paid for it. If neoclassical economics actually worked, they’d be out of a job, right? Don’t markets eliminate bad products?
The video below is of Steve Keen, a rebel who loves taking potshots at the neo’s while advancing his own theories. I certainly don’t have the chops to evaluate his work, but I do like his attitude and humor.
My favorite line:
Neoclassical economics: The application of bad mathematics to wishful thinking.
26-minute video below fold. Enjoy!
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