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Harley "Griff" Lofton's avatar

The first problem is that voters actually believe that Presidents can run "the economy." Presidents take credit (falsely) for good economic conditions so it is logical they should also be responsible for bad economic outcomes. BUT THIS IS JUST A LIE and the media insists on repeating the lie because to really communicate the reality of how a market economy works here or in China is just too hard. It is an economic SUPERSTITION. It is the classical error of confusing correlation and causation.

When a President crows about the economy under their watch they NEVER ask the President or his reps to explain exactly which of his policies are responsible for that improvement. Likewise when blamed for bad economies critics never seem to be able to pinpoint exactly what the President did or failed to do.

The economy is global. The economy is like a climate system not the weather. Just as a climate system can produce hurricanes markets create their own disasters in order to adjust themselves.

Economies grow and retract, boom and bust, recede and recover. Sometimes markets balloon and then spectacularly collapse. The more complex the economy and its market the more difficult it is to predict the consequences of any particular policy pursued by the state.

The question where economics intersects with politics is not who caused the economic situation at any particular moment but which political party is best able to respond to the crises which will inevitably come. Who and how will they take advantage of periods of growth prosperity and who and how will they prepare for times of retraction and privation?

Joseph advised the Pharaoh that there would be seven years of good harvests followed by 7 years of famine. Instead of just gluttonous gorging during the good years Joseph advised storing up excess grain during the good years that would tide them over during the famine.

Adam Smith believed that political economy should fight false beliefs and superstition about economic policy. He also thought that political economy should propose regulatory frameworks that would help protect society and encourage socially beneficial behaviors. However, he also believed that competition and regulations could be undermined, which could lead to monopolies that are profitable for the monopolists (oligarchs) but harmful to others.

The Trump administration will not change that.

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Robert Ley's avatar

And...

I hate to be catty, but...

*Homo economicus* died some time ago. RIP. And yet the Libertarians at Cato continue to believe in and push "individual liberty", somehow believing, in spite of much evidence to the contrary, that humans are by default ruled by their frontal lobe. In fact it takes effort to make your rational brain work and very many of us (about 50% per the latest election results) don't bother to fire that sucker up. If the re-election of the Orange Felon thRump doesn't convince you that your conception of "individual liberty" may not be the best of all possible worlds, I'm not sure what will! What is one of MAGA's mantras? "Freedom" "Free to choose what I want; jobs, cake and a fork to eat it with. And don't forget the beer! Don't wanna' think about it, just wanna' have it. If thRump says he can give me that, he's telling me what I want to hear and I believe him. My heart says he's right!" Libertarianism on steroids. Wake up, guys!!

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