Tuesday, July 29, 2008

Economics Does Not Lie

Guy Sordon exclaims that "Economics Does Not Lie" in the summer edition of City Journal, a periodical published by the Manhattan Institute. Sordon, a contributing editor to City Journal, argues that the increasing mathematical sophistication of economics is responsible for tremendous improvement in worldwide living standards:

Behind all this unprecedented growth is not only the collapse of state socialism but also a scientific revolution in economics, as yet dimly understood by the public but increasingly embraced by policymakers around the globe. The revolution began during the sixties and has finally brought economists to a broad, well-founded consensus about what constitutes good policy. No longer does economics lie; no longer would Baudelaire be able to write that “economics is a horror.” For the mass of mankind, on the contrary, it has become a source of hope.

Sordon finds the ten essential tenets of the "science of economics." Sordon argues that if policymakers follow these largely laissez-faire principles, the world economy will prosper. The whole article is worth a read.

HT: RealClearPolitics

1 comment:

Josh McCabe said...

I'm not so sure I agree the mathemization of economics is responsible per se. Remember is was Samuelson (the father of mathematical economics) who predicted that the Soviet Union was going to outgrow the United States because he made an equation that said so.

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