Anjan Kumar Bhattacharjee
Yes, the Economists failed to convince the Politicians who run economies to their own political needs and convenience. They are only advisers having no power to run economies to the Wisdom of the subject. The nexus of Builders mafia and politicians started pushing more Housing inventory on Americans already owning a house, by "Sub-Prime lending", against the economist advice of "strict Prime Lending". Politicians started devaluation of Dollar [Q/E]on the pretext of economic recession to help Wall street speculators to make more money [at 0% lending] so that politicians can share the loot. Against all economic advice to increase spending on Infrastructure creating more jobs at the ground level and Improving "Demand led investment" to crank up the economy. "Keynes" all advice thrown into the gutter, The fundamentals of Capitalist economy.
Economics behave exactly like people do. Or rather whatever people do, how they decide to earn and spend their money, what they believe would happen tomorrow determines how "economics" behave (until the point, of course, when governments start messing up with it ;-)
Thanks to all for commenting.
@Anjan Sir! Adam Smith (Later on Keynes) economics derived from sensual observation of a capitalist point of view in context of capital led production system. Since then theoretically our economics remained fundamentally unchanged. Our economics is not a science at all, it's not based on pure scientific observation, it's a belief system based on some "economic puzzles" and imaginary characters like 'market', demand etc. which are specifically designed to deceive the mass people to exploit them. As our economics are based on some beliefs it didn't evolve like religions! With the latest scientific knowledges our all other systems are updated to make our life more meaning full but unfortunately our economic systems are remained static on Keynes. Like other genre of knowledge economics don't serve us rather we are serving our economic systems. We can't ensure universal human rights unless we change our present economic system of exploitation through financialization.
Economics, like any field, has to justify its existence, particularly given the stigma of it being a pseudo-science, and therefore the flowering of mathematical economics particularly with the Chicago School is founded in making economics technical (even to the point of superfluity) so that it presents an aura of authority. Opportunity cost theory is a brilliant principle of economics along with comparative advantage by Ricardo, free markets by Smith, and Keynesian economics when markets do not behave as they should. Economics can even tell us something about the trade-offs we make with travelling: how much time is one willing to spend to get from A to B cheaply or else how much money is one willing to dole out to get from A to B fast and furiously? Once assumptions of human behavior are modeled in we should be able to determine a person's travel preferences from an economic point of view, and that when data such as this is published in reports train manufacturers and airline companies can adjust to meet supply and demand accordingly. Econometrics won't allow economists to predict or promise the world, but they do allow for probablistic modelling of the economic climate so that businesses can make the informed executive decisions in terms of providing goods and services to society.
4 months ago
It appears that people can analyse, interpret, theorize and demonstrate natural sciences yet struggle to to do the same for conditions created by humans - such as arts, economics, philosophy.
There's no known reason for inventing the disciplines of econometrics, statistics, and probablistic thinking other than the incompleteness of our knowledge, i.e. if we knew everything there would be no chance occurrences and therefore these disciplines would be superfluous. It follows that Einstein, perhaps, just got it wrong when he propounded a deterministic worldview with which I would surmise is incompatible with an infinitely expanding universe and certain principles of quantum mechanics. If we borrow Heisenberg's uncertainty principle and apply it to human nature, that is to say if we accept that change is in constant flux, then nothing definite can ever be said of human behavior, and therefore we will never come to terms with a social science with the extactness of balls in a billiard table where with enough information it could be calculated to its very conclusion with absolute precision, because there is no end in sight if the universe is infinite. Malthus contemplated overshooting our carrying capacity, but we know he just got it wrong because his pessimistic stance on human nature didn't account for the fact that higher levels of population meant more innovation and technological invention so that we've learned to use resources to greater effect with less effort, thus allowing us to increase our output to input ratio. So the golden thread or rule is simply that we are capable of changing the rules for survival. And it goes without saying that humans are far more alike than different: even William James Sidis, with an alleged IQ of 300, was given a three dimensional, Euclidean earthbound mind that thought in terms of syllogisms and could not think eleven dimensionally. Geniuses and the gifted have higher quantities of pre-existing traits but nothing fundamentally new, contrary to what certain men of literature are accustomed to believing.
Cloud financial services are flourishing and potentiality of community banking is increasing! We are using analogue finance in our digital system! Our financial system is based on some decisive ideas which need a high cost carriers (Banks & Intermediaries) and designed to serve a specific interest group (Capitalist). Capital deprives the real producers from its real 'profit' and exploit surplus productions through Financialization.
System cost of our financial system is very high and it could be reduced significantly through restructuring the system itself by utilizing technological advantages. Community banking may be the right solution against the exploitation of corporate capital. Considering utility, productivity and cost, cloud based community banking has all the ingredients to serve us efficiently within our changing digital phenomena. Recent past financial system failure has created the ground very well!