From here:
“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a “dismal science.” But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.” - Murray Rothbard
There is no question Rothbard was addressing the vast majority of humanity when he wrote the above quotation. After all, it is true: nearly everyone is completely ignorant of economic reasoning, and yet nearly everyone holds very strong opinions on economic subjects. Just think about the many, many basic economic fallacies that are accepted as common knowledge:
- minimum wage
- rent control
- price controls
- price gouging
- drug prohibition
- gun control
- protectionism
- bailouts
- Keynesianism
- stable price level
- government can create jobs
- anti-trust regulations
- etc. ad nauseum
People just do not understand the basics of supply and demand or the price system, or the incentive structure of a tax-funded monopoly. For example, the average person is ignorant of the fact that a minimum wage will unemploy marginal workers, or that there are systematic reasons why there are long lines at the post office and not at the supermarket.
Clearly, those of us who do understand economic reasoning will have to address this widespread ignorance. But instead of having to use the unwieldy phrase “economic ignorance” over and over, I have coined the term ecognorance (e-COG-nor-ance) to designate the ignorance of economics so prevalent today. Thus, “ecognorance” as a noun means the condition of economic ignorance, while the adjective “ecognorant” designates being unaware of economic knowledge. For example, we would say that statists are ecognorant, or that they live in a state of ecognorance.
I foresee that this new term will save a lot of economists’ time in pointing out how ecognorant people are. (See? Before I would have used the clunky, longer phrase “economically ignorant”. Linguistic efficiency!)