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Economists And Soothsayers: Skin In The Game

12 mins 11 mths

Ancient royal soothsayers used to predict the future by throwing sticks and knucklebones on the floor and seeing what kind of patterns they formed. Today, we have economists to perform the same kind of thing but with formulars in dusty textbooks to guide them. There are strict rules around economic behaviours and outcomes like inflation. Different parts of the economy are linked, in their minds, like the unemployment rate with the level of inflation. They have been taught by their professors and textbooks to abide by calculations and processes considered to be carved in stone. Economics is fundamentally about human behaviours in the marketplace. The history of humanity tells us that there is only one thing that you can rely on and that is the unreliability of humans. Economists and soothsayers: Skin in the game.

Economics Fresh Politics