In addition to the articles and information on the Mises website, I tend to read more mainstream news/business publications to hear from the more mainstream ‘economists’. I get annoyed practically on a daily basis when reading opinion pieces on the economy.
For example, a few days ago, an economist writing for the FT (can’t remember the name or the article) was writing about executive compensation in Wall Street. His argument was that, since these big banks were essentially gambling on taxpayer bailout guarantees while being able to privatize profits, these massive bonuses were shameful. His simple diagnosis was pretty much spot on. However, when coming to propose a solution, instead of the obvious - doing away with the CAUSE of moral hazard (taxpayer guarantees) - he wanted to regulate the SYMPTOMS of it (excessive payouts). I honestly think many 10 year olds could’ve seen the problem here.
Today, again in the FT, I was reading an article about the efficient market hypothesis and law of one price. The author (Chicago School Economics Professor Richard Thaler), basically argues that markets can give a ‘wrong’ price (as evidenced in the housing and tech bubbles), but completely fails to talk about the nature of such markets, and simply assumes that this is the fault of free-markets, and not with Federal Reserve and Govt interventions.
And I’ve honestly lost count of the number of articles I’ve come across talking about the two camps in economic thinking - the Keynesians vs the Monetarists/Friedmanites. No mention of course of countless other mainstream contributors to the history of economic thought and theory. Naturally, the remedies such articles propse will end up being of a soft-socialist nature at best.
In short, these are only a few examples of what I encounter on a regular basis, and it honestly gets on my nerves, especially since these are opinions by respectable economissts. How is it that you seldom read the words Federal Reserve and Austrian Economics on such articles? Is the Austrian School being purposely ignored, or do most of the economists simply not know of its existence?
Almost everyone in a mainstream media outlet recites the official State propaganda. That’s the whole point.
Official State propaganda is that Keynesian or neo-Keynesian economics is an absolute proven fact, and that Austrian economists are a bunch of fruitcakes. Instead of saying “Those Austrian economists sure are stupid!”, they just don’t mention the viewpoint at all.
If you want better information and analysis, the place to look is on the Internet. If you follow the right blogs and forums, you can get better news coverage and analysis than from the entire mainstream media.
When reading a mainstream media “economics” story, view it as a joke rather than something serious. It’s amusing to see the obvious lies and fallacies. It’s simultaneously frustrating and amusing.
“The Wall Street Journal” and “The Economist” are tabloids as much as “The National Enquirer”. They’re just targeting an audience who thinks they’re knowledgeable about free markets.
That’s why I avoid reading mainstream media. I value my blood pressure too much.
Ironically enough, I’m more tolerant of conservative writers, like Townhall.com. I often disagree with their political views and most of them are statists, but at least they have a more sound understanding of the perils of the governmenal interventions in the economy. Thomas Sowell is the one I try to follow. Even if I disagree with him, he’s still fun to read
Keynesian economics is favored by power mongers and controlfreaks. The Austrian school freaks these people out. They don’t want to change the status quo. They are all addicted to big government.
I avoid the news, especially financial news like the freaking plague. It wont help you and its filled with talking heads who make bad calls all the time, but as long as their wrong veiws are what the herd is is saying they dont mind. I do pay attention to headlines etc to see how the social mood is. Thats about all its good for. I knew this corrective rally would bring news of recession ending and other optimistic themes, which it has. And the amount of economist giving trading advice really gets me going. Dow over 14000, they saw no danger because their lagging indiactors didnt show anything to get alarmed about…( by the way there are some economist who do know how to forecast).
Do what I do, solid research and seek the ones who know what they are talking about.
Read: “I have no clue what I am talking about.” You basically take a dictionary definition of the word, make no effort to understand how it is utilised philosophically and brazenly stick to a method the utility of which in the social sciences is dubitable at best. All that is self-evident so far is your ignorance, sorry to say.
