Abruptly, after a century, in part due to Galileo's telescope destroying the science of political lies and hierarchies built on them, the astrological edifice disappeared in a puff - or so it appeared.You would figure with all the technology out there today we could create an economic simulator that could mirror the real economy. I mean with some constraints like only a certain number of products and a certain number of participants and such. Then you can run a scenario and see how raising interest rates or adding stimulus actually effects this pocket economy. I would think a powerful enough supercomputer might be able to tackle something like this.
Except that macro-economics is now its modern incarnation: Only instead of stars, macro-economists look at "aggregates" gathered religiously by governments' statistical agencies - never mind if the country has a dictatorial regime, be it left, right or anything in between, or has large black markets, as Italy and Greece do, where tax evasion has long been the main national sport. So let us first forget about this "macro" stuff, whose beginnings are almost a century old, and offer a simple alternative for shedding light on the situation today and on possible solutions, hopefully demolish this modern pseudo-"science" once and for all.
Tuesday, April 28, 2015
Macro-Economics Like Astrology? What they Need as an Economy Simulator
Hmm this is very true of the "dismal science."
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