Thursday, January 12, 2017

Why The Economics Profession Is Worried About Trump's Economy

This article describes the sentiment of professional economists at its recent annual meeting.  Conservative and liberal economists expressed real concerns about Trump's attempt to make America great again.  Most of them don't believe that Trump's plan will be good for the economy and some worry that it might be catastrophic.  Their concerns contrast remarkably with those of small business owners and Wall Street traders.  Its not surprising that small business owners are positive about Trump.  Trump has focused his attacks on major corporations and they typically complain about government regulations and the cost of compliance.  They may believe that Trump will drastically reduce government regulations.  Wall Street likes anything that shakes up the economy and stimulates banking activities in response to major change.  They may also believe that Republicans will allow a Republican president to employ fiscal stimulus to the economy that they deny to Democratic presidents. 

I have a deeper concern than those expressed in this article.  Economists are rational, perhaps to a fault.  Economic theories presume rational behavior by households, firms and government.  Donald Trump's ideas are all over the map and they lack internal consistency.  Trump and many of his supporters have little respect in general for science or for the truth.  Trump and his followers place their belief systems beyond the traditional rules that govern the conduct of academic inquiry.  Facts that contradict strongly held belief's are rejected out of hand.  False facts that support a belief are commonly used to incite and engage support for Trump's positions on almost every subject.  Economists are not the only academics who are concerned about Trump's anti-intellectualism and his lack of respect for the normal rules of rational debate. 

No comments:

Post a Comment