Fault of Current Economy?

Economics is a system of actions, policies and things of value interacting with one another in a highly variable context. It is a continuum of these actions. One small bit may cause an effect, which then leads to a result, both of which may cause other effects and results. It is chaos theory in full view. No one thing is a fault line for all the others.

Also, no one person is the bearer of fault.

Yes, wrong turns do happen. Yes, people are the actors who cause a stream of effects to result from those wrong turns. But ever has this been true. What is also true is the befuddlement and non-understanding of how the economy works. Most people share this non-understanding. They don’t think this is true, but just because they are players in the economy and are feeling the effects of the economy, does not make them a keen expert on the economy.

For most economists, there are other economists who disagree with you. Case in point are the fans of Milton Friedman and those of Maynard Keynes. Both brilliant economists, both purveyors of their own truths. In the long run, however, Keynes’ theories have proven more correct over the decades. His original theories, however, have often been confounded with other ideas from other quarters and morphed into something simply not Keynesian.

At any rate, blaming the current economic situation on Trump is not totally accurate. Blaming it on Biden is simple nonsense. The economy is what it is because many players simply got it wrong years ago and continue to conflate the issues which have a life of their own anyway.

Playing politics with this issue is normal. It is ever present. And it continues to be wrong-headed.

There are better ways to manage our economy to be sure. But it takes a willing stable of specialists to collaborate. First, they must agree on the outcome they are working toward. Then, they need to proceed with analysis of the current situation and what makes the desired outcome impossible. Identify next what needs to change or happen to move in the right direction. Who is harmed and who is benefitted from these moves? How can they improve the process so fewer are harmed? Then map out the pathway toward the outcome and, please, estimate the time it will take to get there!

This solution would work if humankind were perfect. They are not. So, the probability of fixing the economy intentionally is most likely low to zero.

Now, who is to blame for that? No one. That’s right. No one.

Mull that over and rethink the issues.

July 20, 2022

 

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