Can Anyone recognize Truth if they see it? You can put four Answers on a Board, two within the established parameters, two outside the parameters established. Can you ascertain which Answer is correct? Can Anyone devise the likelihood of every Answer being True? Is there Anyone who would like to bet that the correct Answer will lie within the parameters set up? Can the Answers even be justified by naming them as ‘elasticities’? Economistmom searches for her navel; I play an intricate Game of flipping a Coin. It would help the Student to understand that Economists achieve Renown by drafting pretty Graphs accompanied by exquisite mathematical models of beautiful precision, none of which has any need to for a relationship with Reality.
My old friend Arnold Kling dreams of an older, simpler system of Banks acting like Banks. I agree with every point Arnold makes, but he attempts to push back the onslaught of the new economics. The notion of Public Good has disappeared from the Public Forum. We are now in the Age when the Goal is not to provide stability; it consisting of the ability to skirt the Intent of the Law to personal advantage, without scurrilous descent into Fraud. Everyone seeks that great Cash Cow which shows one potentiality of success, no matter how low a probability of outcome; all so One can claim that it is not fraudulent. I call This the ‘Noble Image even though the Heart is Black’.
It is the intersection of these two Trends which have brought Us to our current state. Can anything be accomplished, when no one searches beyond their own personal Gain? I blame most of this upon Richard Nixon, though Most would not consider my reasoning as just. Nixon was actually a truly good Governor and President, though he really lost points as a Legislator, legal purist, and as human being. Children who watched his rise and fall acquired an leadership example of expedient self-serving, where any misconduct was justified; simply because no one could have sufficient impact to disturb a system with the catchphrase of ‘too big to fail’. No one considers a system where all of the leadership is devoted to like self-service, a Rot from the Top Down. How can Anyone motivate the children, when the leadership is deviant? Here is where the total trouble resides. lgl