[stretchwithme]

An economist finally admits it why they fail so much.

"let’s face it: Econometrics is a travesty! While its heavy reliance on statistics often confuses us into believing that it is a form of applied statistics, in reality it resembles computerized astrology"

"the reason for this unavoidable failure? None other than our inability to run experiments on a macroeconomy"

The theories are never tested. They just get implemented. A thousand other things are happening at the same time and its impossible to get anything approaching the clarity of a double blind experiment. But the adherents act as if they've got exactly that.

[tatsuke95]

>"An economist finally admits it why they fail so much."

What do you mean by "so much"? Because they can't accurately, regularly predict the future?

I think you'll find that, in reality, economists know their fallibility and limitations. It's the proletariat that doesn't understand the under-pinnings and assume economists should be 100% accurate when they make predictions, and are upset when they are not.

[stretchwithme]

We're not in the current crisis because the people expect 100% accuracy from economists. Its that economists have bad theories.

Most economists fail to offer theories that accurately describe reality. Keynesian is the current disaster.

And politicians can only pick from the available theories and tend to pick the most shortsighted of policies, as they are trying to get re-elected.

Its not that a bunch of unforeseen events have occurred. Its that theories being followed are bad. They ignore many very real things. And the consequences that most economists have been denying all along are happening.

For example, they analyze the multiplier effect government spending but ignore the effects of removing those resources from other parts of the economy. They don't analyze what happens where the resources are being taken away. But those resources are real things that people no longer have and cannot use.