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View Diary: Abbreviated pundit round-up: the jobs report, Ellsberg on Snowden, Missouri lawmakers on guns (97 comments)

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  •  Thanks for the great Roundup, MB! (1+ / 0-)
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    I applaud your encouragement regarding Krugman's observations.  His article also highlights one of (if not the) fundamental mechanisms at work which must be addressed and restructured if we ever hope to make it through this mess (emphasis added):

    Unfortunately, there’s also a technical issue that plays into the prejudices of the monetary hawks. The statistical techniques policy makers often use to estimate the economy’s “potential” — the maximum level of output and employment it can achieve without inflationary overheating — turn out to be badly flawed: they interpret any sustained economic slump as a decline in potential, so that the hawks can point to charts and spreadsheets supposedly showing that there’s not much room for growth.

    As long as our econometric methods refuse to recognize that economic growth is at an end, it matters not one whit what statistical technique one uses to model economic growth potential.  Until our policymakers begin facing the reality that we are beginning the transition to a steady-state economy all of these methods they use to determine monetary policy are not only a waste of their time, they are an even worse waste of society's time that we are rapidly running short on to get to work on the fundamental restructurings that need to get underway.

    Pessimism of the intellect; optimism of the will. - - Antonio Gramsci

    by lehman scott on Mon Jul 08, 2013 at 07:16:47 AM PDT

    •  Moving the goalposts? (1+ / 0-)
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      lehman scott

      Time for Harry Truman's one-armed economist.

      OTOH - I think how awful things would get under President Mitt.

      What stronger breast-plate than a heart untainted! Thrice is he arm'd, that hath his quarrel just; And he but naked, though lock'd up in steel, Whose conscience with injustice is corrupted. King Henry, scene ii

      by TerryDarc on Mon Jul 08, 2013 at 09:02:57 AM PDT

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