Sunday, August 24, 2014

Why Is Macro So Hard? Brandolini’s Law

This comes to us from computer science:

Ordre Spontane has some similar quotes.

Anyway, think about a handful of macro issues:

  • Trade restrictions are good.
  • The minimum wage is a good way to help the poor and unskilled.
  • Predatory pricing is a successful management practice.
  • Americans don’t save enough.
  • Government needs to subsidize firms before they can thrive.

These are all BS. And yet macroeconomists spend a lot of effort, year in year out, trying to expunge these from informed public discourse.

Via Café Hayek.

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