…galileo and economic theocracy…Posted: 2013-09-26
Galileo Galilei would be confused.
After all, he did have to use his telescope, something very, very few had then, and also had to apply some serious maths in his astronomy, knowledge and skills way beyond most of his day. And there was the challenge of those orbiting distant and close planets including earth, which were a bit too large to show folk in Tuscany or Rome to prove his theory and discovery. And in any case, the general public had no option but to believe the religious and Aristotelian truth that the planets orbited the earth – the heresy business could be brutal for body and mind.
So this present challenge should be a no-brainer, no challenge, right? All the data and evidence are out there, readily available for even an economics senior to analyse and reach the obvious conclusion? Wrong. Just like Galileo, analysts in an enlightened western world face similar rejection and ridicule – the new religion of Crony Capitalism has declared the reality to be a fiction. No matter how detailed and clear the analysis, though not in Latin, the verdict of the corporate media, ‘Heresy!’
Repudiation of the Reinhart-Rogoff advocacy of that famous ‘fiscal cliff’, inconclusive in their GITD, did not mean the religious truth of Expansionary Austerity would not remain received doctrine for the faithful. Thus, Krugman would state, in referring to a chart on government purchases in his The Depressed Economy Is All About Austerity,
As you can see, the gap is large and has been growing rapidly; it’s currently at about 400 billion 2009 dollars, or more than 2 1/2 percent of GDP. Given reasonable multipliers, this suggests that real GDP is somewhere between 3 and 3.75 percent lower than it would have been without the austerity. And given the usual Okun’s Law rule of half a point of unemployment per point of GDP, this in turn says that without the austerity we’d have an unemployment rate well under 6 percent, maybe even under 5.5 percent.
And that unemployment rate is not the more realistic U6.
Or Josh Biven’s, Austerity, Not Uncertainty, Is the Scary Part of Fiscal Showdowns
This may sound doubly strange—the corrosive impact of “uncertainty” is now essentially an official talking point for the Beltway pundit class, and the most treasured cliché of economic commentary is that reducing the budget deficit is nearly always and everywhere a good thing.
Or Simon Wren-Lewis’, The scandal of the austerity deception
Reducing the size of the state temporarily to reduce debt, and reducing it permanently are rather different things. There is apparently no appetite for the latter, so why not push for the former as a way of achieving the latter? As a political ruse it sounds very clever, and it is currently working in the Eurozone, US and UK. But it remains a ruse: a giant deception played on electorates across the globe.
Exposure of the con by such economists to no avail. Using humour, albeit dark, over at firedoglake a blogger advises, The Grand Bargain Circus Is Back In Town! With the clowns of the Grand Bargain (Betrayal) and austerity prepared to do their routine.
Works of esteemed economists would necessarily have to be consigned to the Index Librorum Prohibitorum. The good news is such analysts have not yet been summoned to The Audience of the Grand Inquisitor or ordered, as of now, to write solely on more serious matters like Kim Kardashian or Miley Cyrus, around whom the world revolves.