Ortega y Gasset on the specialist
3 hours ago
The consequences of non-normality of the fat-tailed kind, implying infinite
variance, are quite serious, since hypothesis testing and interval estimation
cannot be undertaken meaningfully.
This Keynesian explanation is adolescent. Lazily identifying the symptom as the
underlying problem, Keynesians then craft a "theory" that shows just how
inadequate spending can in fact cause inadequate spending. How clever of them!
It’s understandable that many people untutored in economics fall for
this nonsense. Just as many untutored in geography naturally think the Earth is
flat (looks that way, doesn’t it?), many untutored in economics, upon seeing
businesses closing up and workers being laid off, conclude that the problem is
inadequate spending (looks that way, doesn’t it?).
Daniel Kuehn is a doctoral candidate and adjunct professor in the Economics Department at American University. He has a master's degree in public policy from George Washington University.