Washington Post, Sept. 30, 2009: Page A23: Cf. "Keys for Economic Understanding" www.ask.com for reference.
"The problem with economists with the purer strain of free-market economics associated with the University of Chicago is not simply that it failed to predict the near collapse of the world financial system last year. The problem is that it believed such a collapse could not happen, that all risk could be quantified by mathematical models and that these quantifications could help us correctly price just about everything.(sic) Professor Galbraith challenged such and I do concur.
Every nation, no matter its economic or political system, has followed Keynes's prescription for combating a major downturn increasing public spending to fill the gap created by the decline of private spending. That is why the world economy seems to be inching back from collapse and why the nations that have spent the most, China in particular, seems to be recovering fastest."
Comment: The Keynesian Cross Model can be found in China's crossroads with externalities.
In the 1970s, economist Robert Lekachman observed that economics students had to master so much mathematics that they became emotionally invested in teh idea that the math they had learned explained - had to explain - the universe. It is high time to call for courses in macroeconomics with another disciple - history or psychology - to expose the comolexities of human institutions." I have sent my blogs in the past to stress human behavior and philosophy of life to understand the nature of economics.
"If mainstream economics does not change, it may eventually face the worst of all fates: market failure. How many students want to spend their lives quantifying a world that does not exist?"
Book Review of "Almost Everyone's Guide of Economics," published by Atlantic Economic Journal,Sept. 1979 www.bing.com for reference.
Francis Shieh a.k.a. Xie Shihao, a friend of Professor John K. Galbraith, had the same reasoning and raised such query more than three decades ago. Delighted to see the article sharing the identical rationale today. Sept. 30, 2009 at 5.32 p.m.
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