My favorite part of this:
“The next time you are swayed by the jargon or seeming expertise of the economic forecaster, ask yourself this question: If he can really predict the future so well, why is he wasting his time putting out newsletters or doing consulting when he himself could be making trillions of dollars in the stock and commodity markets? ”
In essence: If he’s so smart, why isn’t he rich? It’s a valid question.
“…subjective expectations of the public…cannot be forecast with certainty. And this is one reason why economic forecasts can never be made with certainty.”
This article is featured in chapter 2 of Making Economic Sense
Our country is beset by a large number of economic myths that distort public thinking on important problems and lead us to accept unsound and dangerous government policies. Here are ten of the most dangerous of these myths and an analysis of what is wrong with them.
Myth 1: Deficits are the cause of inflation; deficits have nothing to do with inflation.
In recent decades we always have had federal deficits. The invariable response of the party out of power, whichever it may be, is to denounce those deficits as being the cause of perpetual inflation. And the invariable response of whatever party is in power has been…
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