Question by imaxkr: Why are so many so naive and clueless when it comes to economics?
People constantly chose to mistakenly blame the previous administration for the current economic conditions.
But why can they not realize that the current economic conditions have been building for three decades and that by simply “blaming Bush” is to ignore the economic realities?
I am by far NOT a fan of the previous administrations poor fiscal policies and pointing to them as the “cause” is counter productive and hypocritical when the current administrations fiscal policies are nearly identical but just more radically incorrect.
The catalysts for current economic conditions were started when we abandoned a “hard currency” and went with fiat money in the seventies.(the creation of the Federal Reserve early last century was the true “beginning”) And the Federal Reserve artificially keeping interest rates below where natural market conditions would have placed them (we can thank Alan Greenspan for that) fueling poor and irrational investments by both businesses and individuals.
An immediate result in the seventies was the OPEC oil crisis. From there the the double digit inflation and double digit unemployment ensued until policies were put in place to correct them in the early eighties. But the failure to address the root causes combined with deficit spending at the time (which is dwarfed by what we currently have) simply delayed the problems.
Through out the nineties “times were good”, but underneath the “cheap” money was working to destabilize the economy.(the internet boom/bust was a major visible symptom of the problems) Many credit Clinton with “running a surplus” (which never happened, but the deficit was at very low levels) not realizing that the economy at the time was running at an inflated unsustainable level.
As the underlying foundations continued to erode, nothing was done and is still not being done to rectify the situation.
Every effort to date has been to try to re-inflate the economy to the previously unsustainable levels. These actions just delay true economic “recovery” and will just make the next economic correction exponentially worse.
So to blame one administration is incorrect and naive. The reality is there have been several administrations and Congresses controlled by both major political parties that have failed to address the true problems.
The current administration has done nothing that will rectify the current conditions (but to exasperate them) and have actually been extremely distracting to the issue by disingenuously “blaming” the previous administration or the baking sector as a whole and attempting to tie in health care and “cap and trade” (which as written and proposed will do more harm than good in economic terms).
The last time there was this level of “anti business” rhetoric coming from an administration was during the thirties and economic recovery was delayed almost a decade.
g: first, Never stated that the recession has nothing to do with state economies but that you can not fully blame the recession for state economic troubles, simply because many states budget are not in trouble.
Second, to assume that I am a Ron Paul “fan” is an incorrect assumption on your part.
Third, As for “zero acceptance” of other economic theories is again not a correct assumption.
Fourth, the message is that to simply blame one administration for the economic troubles is naive, there is not an economist either Keynesian or Austrian the thinks that and was attempting to show the “ripple effects” that policy can have in the future.
And last, I attacked no one, I just was asking if it is naive that so many take such a narrow partisan view of economics. I probably should have worded the question differently.
Best answer:
Answer by kysersozeus
Because they have not read Thomas Sowell.
What do you think? Answer below!
Tags: clueless, comes, economics, Many, naive
public schools and obama is black so we must love him. puck.
Because they have no idea what money really is… and how governments manipulate it..
http://mises.org/media.aspx?action=category&ID=92
Because they have not read Paul Krugman. The aforementioned Thomas Sowell is a conservative and therefore does not understand economics at all.
The Saul Alinsky training the community organizers get muddles their thinking.
They watch MSNBC and read moveon and huffintonpost.
They must have taken lessons on economics from Shrub!
Because public schools teach liberal diversity garbage instead of math and economics.
Are you talking about Mr Obama when he talks about politics?? It is hilarious!! He has NO clue but tries to use BIG words like the Federal Reserve to twist people into believe he has a clue. Thank God I have a degree in economics… I know the difference!!
The Federal Reserve is a BIG problem that not many are talking about. They control monetary policy and are a private bank!! Alan Greenspan does one thing after saying another. A good strategy for wealth transfer!!
Hatred knows NO intelligence.
Liberal Democrats do not like Thomas Sowell and “The Housing Boom or Bust”… it sheds light on their agenda!!
When the whole country is too busy worshiping a dead, bleached out, pedophile to pay any attention to any thing else how can you expect them to understand basic economics? It ain’t gonna happen. When a dead singer takes the lead story away from the revolt in Iran or the missiles in N. Korea we are a very lost group of people.
Dave
Because they never learned how to deal with things fiscally and responsibly.
Because, like children with money and no parental guidance, we like to buy pretties and support nobel causes. When it is our own family that will suffer, we think differently.
Sorry, I do not have a degree in economics, do you?
you know… there are many economists who disagree with you…
I guess they are all naive and you’re a genius?
sure you are buddy, sure you are…
do you know what I see here, I see a ron paul fan who doens’t HAVE ONE CLUE WHAT HE’S REALLY TALKING ABOUT… basically just repeating verbatim what he’s been told is the problem…
weren’t you the one that said that the recession has nothing to do with state economies?
that’s pretty much shows you’re clueless about BASIC STATE ECONOMICS… and even the simplest ideas of taxation and the economy…
you don’t have a clue about anything and you’re just blindly repeating your propaganda…
you show ZERO DEPTH OF KNOWLEDGE WITH ANYTHING YOU TALK ABOUT HERE… zero acceptance of any real economic theory besides your own propaganda…
EDIT: the simple fact that you attack everyone who doesn’t agree with you as being naive is a HUGE indicator that you’re very insecure about your own understanding…
money from thin air, and people really dont care how it devalues only that they hold the paper
If you are as good in economics as you claim and the rest are either naive or clueless, why don’t you challenge the feds on the cable news networks or write about your argument in major publications instead of coming to Yahoo Answers? The country needs brilliant economists like you and would hate to waste your precious theories on these pages.
Most have never had someone to show them .School does not teach basic things like checking, savings, loans, credit cards,flim flam and some of the bankers took advantage. So if they can’t handle there own money how will they tell the government.It’s up tp the people to make our leaders do what’s right many bitch n moan but will never get in touch with a elected person.Also many like all the so called free stuff school lunch, low cost housing food stamps to name a few that is why they are naive
I used to vote Democrat, until I went to college and took poli-sci & econ classes.
One change always leaves the way open for the establishment of others.
Niccolo Machiavelli
In todays world it’s not about (right or wrong) but rather RIGHT or LEFT.
Thanks for the effort though…