Econimists as Royal Entrail Readers


A science has predictive power; that is, based on given information, it can make predictions as to what will occur.

An art has, at the least, descriptive power, that it can describe, and offer an informative, or useful view, of something.

Economics offers neither. It does not predict with a reliability better than the daily horoscope in the paper, nor does it describe a situation in a way that is useful and clear to anyone.

For example, in the early/mid eighties, they Fed paid several million dollars for a major economic firm to come up with a formula to tell them how many pennies to mint, each year. The formula did not include any adjustment should, for example, several major state might raise their sales tax, in one year.

Remember the penny shortage? This is why it happened. And so, the Fed paid another half-million dollars to "fix" the formula.