Blog-Reference
#DrainTheScientificSwamp, on Jan 7
Scientifically incompetent economists bear the intellectual responsibility for the social devastation caused by mass unemployment.
Iatrogenic economics
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REPLY to Barkley Rosser on Jan 8You say: “Oh, and Egmont, your glorious theory is of no use whatsoever in solving problems of mass unemployment, despite your delusions to the contrary.”
“We economists have all learned, and many of us teach, that the remedy for excess supply in any market is a reduction in price. If this is prevented by combinations in restraint of trade or by government regulations, then those impediments to competition should be removed. Applied to economy-wide unemployment, this doctrine places the blame on trade unions and governments, not on any failure of competitive markets.” (Tobin, 1997)
What “economists have all learned” is provably false. Being scientifically incompetent, though, economists have not realized it to this day.#1
The axiomatically correct macroeconomic Employment Law says that the relationship between wage rate and employment is POSITIVE. This is the OPPOSITE of what “We economists have all learned, and many of us teach”.
The Employment Law consists of measurable variables and is testable.#2, #3
Mainstream employment theory is provably false. And from this follows that economists’ policy guidance WORSENS the situation. From this, in turn, it follows that economists bear the responsibility for the social devastation of mass unemployment.
Whether we call the public danger that unqualified economists constitute iatrogenic or econogenic is secondary. Econogenic is preferable because it clearly designates the profession that has caused so much social misery for 200+ years.
Because of this, it is a good idea to bring all this brain-dead blather to a close, to test the Employment Law, and then, with the scientific proof in hand, initiate a GoFundMe and finally sue economists individually/collectively for damages/fraud. Time to get serious about minimizing econogenic outcomes.
#1 Wage rate and employment: the basics
#2 Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
#3 Go! ― test the Profit and Employment Law
Related 'The end of political economics (II)' and 'Economists ― medics or barber-surgeons?' and 'A bitter pill for political economists' and 'Orthodoxy vs. Heterodoxy: the squabbling of quacks' and 'Economics ― a doctor worse than the disease' and 'How economists murdered the economy and got away with it'.
For more about iatrogenic economics see AXECquery.
