Posted tagged ‘economists’

Surprising Economic News

October 28, 2009

Consumer confidence falls to a 26-year low.

 New home sales fall in September.

 What’s that? You aren’t surprised? Yeah, me neither. But, apparently, these things were surprising to “economists” according to the linked articles.

 Further proof that Wall Street is completely disconnected from reality.

 Further proof that Keynesian economics is flat wrong (bet they weren’t surprised at the Mises Institute).

 Further proof that the sleeping giant is awakening – that the people are not believing what they hear about “green shoots”, “recession is over” and “jobless recovery” from politicians and pundits.

 The basic rules of economics are kind of like the laws of physics. No matter how much some “expert” might agrue otherwise, you cannot get rid of gravity by throwing things up in the air.

Econonspeak — Orwell’s 1984 Updated

February 1, 2009

Fantastic post by Michael S. Rozeff on the LRC Blog today:

Econonspeak: Toward the end of the twentieth and at the beginning of the twenty-first century, economists developed a language that distorted the reality of economics and replaced it with distortions and garbled allusions to economics and economic history. This became known as Econonspeak. It rapidly spread to court economists who found it useful in manipulating those who understood little economics. Eco-non-speak: a language using economics terms that is non-speak, that is, it provides no useful or, more usually, faulty economic concepts to the listener.

Fine examples of econonspeak are provided by what at that time was called macroeconomics (now regarded as little short of witchcraft.) Ben Bernanke and Timothy Geithner provide many instances of econonspeak.

It was Geithner who said “The President’s plan is meant to jumpstart our economy making a down payment on longterm economic growth.” This sentence shows the ability of econonspeak to confound the listener, while providing incoherent phrases that mimic real thought. We have here a mixing of the three metaphors of starting an engine, making a down payment on an investment, and improvement in economic income. There are in reality no connections among these three elements, which is what makes this a classic and beautiful example of econonspeak.

Continue reading…