01/30/09 - RealClearMarkets by Frank J. Tipler, Professor of Mathematical Physics at Tulane University.
[edited] The inability of macroeconomic theories (about an entire economy) to make accurate predictions means that those economists do not know what they are talking about. Our leaders are being advised by macroeconomists, and they haven’t got a clue where they are leading us. Their actions may lead us out of the current recession, or they may lead us into a depression as bad as the Great Depression.
Franklin Roosevelt is often given credit for experimenting with the economy in a scientific manner. He did nothing of the sort.
Any experiment involving human beings has to be a controlled experiment, as in medicine. Half the patients are given the new medicines and the other half, the controls, either the old medicine, or a placebo. Then, and only then, can one tell if the medicine actually improves the condition over doing nothing (the placebo), or is making matters worse.
In contrast, today’s economic advisors to the President, like Roosevelt, propose to apply their economic medicine to the entire economy. This is astrology, not science. The professors of economics have no true, experimentally confirmed knowledge of macroeconomics.
The widely touted macroeconomic “experts” are no experts at all.