23 Sep 2010

Macroeconomic managers [sic]

Orszag, Romer and now Summers have resigned from Obama's administration.

The Economist says that most of them are burned out (and perhaps frustrated). I agree, and do not think that they are resigning for failure, since we don't know about alternative universes and many others affected economic policy.

I wrote this comment [edited for typos]:
It's a pity that blame and credit will be hard to apportion, but Larry and the others surely deserve some of each. The trouble is that they are getting blamed for many things out of their control (Rush Limbaugh is playing on my father's radio now, and Rush is quick to shift Bush's mistakes to others). On the flip side, they will not get credit/blame for many things that they affected.

People are too quick to impose human control over macroeconomics and attribute changes to individual actions. Each one of us is just about as important as a grain of sand on the beach. A few of us have pebble-sized powers, but those are not so big...

Better to be humble, set simple rules, and leave millions of individuals to sort things out (a la Hayek, Friedman et al.)

1 comment:

  1. Interesting perspective Dr. Zetland. Would offer this alternative view: Orszag, Romer and Summers are more like characters from the movie Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb.


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