Paul Krugman - Varieties of Errors
Economics: The Impossible Scoreboard!
Who' s winning? Who will win? When does the game end? Underneath what Paul is saying is a deeper question that relates to how we will ultimately measure success? - success of our theories, assertions and predictions? The whole issue is so complex and clouded with misinterpretation, that you could spend a lifetime in a splendid discourse with very bright people drinking some pretty fine wines. But what we should not accept are frivolous answers - in the long run we are dead - that is simply childish and immature.
There is little doubt that Keynesian measures have given us positive benefits, but perhaps these short term advantages in balancing the production-consumption model are aborting a greater progress. It is an abstractionist model exercising a strategy that focuses on creating "effectual demand" by originating debt and money Both over the long haul, do not logically relate well to the physical capacities and constraints of the money issuing nations geographic capacities. Resulting in tactics that promote rapid growth; leading to accelerated resource depletion, overpopulation and a destruction of the physical carrying structures that support present and future economic activities.
Whether it is today or tomorrow, a fair conclusion or measure of who is winning remains clouded. But no one wins in the end, if our strategies and beliefs push us over the extinction cliff faster than need be.
Until then, we suffer misfortunes of outrageous slings and arrows - Varieties of Errors!
Dr Peter G Kinesa
December 1, 2012