How Can Economists be so Wrong?

28 03 2011

You would think that economists would be sensitive to the incentives and biases that condition their statements about the world. After all, economics is the “science” of incentives and human motivation. But the financial meltdown of 2008, the past 30 years of bubble-economics and the gutting of the American economy has shown that most professional economists lost their ability to have balanced perspective on the economy.
The problem is the scope of economic science, as defined by the neoclassical agenda. It does not recognize “the observer,” nor interpretation/hermeneutics, nor “depth psychology.” Mainstream economics has the mistaken notion that it is an objective, empirical science. It is not.
Links on disclosure rules and professional ethics for economists:
A psychological profile of Alan Greenspan
See the film INSID