Barkley Rosser reports: “Very important was that it [Poland] did not undo its generous social safety net, especially its generous pension system. This was a central issue in the 1993 election, with both Blacerowicz and Sachs unhappy about this outcome. I remember well the 1994 ASSA convention at which Sachs gave a major speech in which he basically whined about this election outcome and essentially accused the Polish people of being a bunch of spoiled brats for wanting to hang onto their supposedly overly generous pension system.”
Note first of all that the organization of the Polish economy is the business of the Legitimate Sovereign of Poland. The economic stand-up comedian Jeffrey Sachs does NOT by any stretch of the imagination come close to something resembling a Legitimate Sovereign. So, his whining at the ASSA convention about the Polish people is a non-event, except perhaps for the retarded members of the American Economic Association.
What economists have not fully realized to this day is that they have no mandate to dabble in politics because (i) this violates the principle of the separation of politics and science, (ii) they lack the true theory of how the economy works.
That economist in their utter incompetence make matters worse is a regularly repeated experience throughout history: “Late in life, … Napoleon claimed that he had always believed that if an empire were made of granite the ideas of economists if listened to, would suffice to reduce it to dust.” (Viner)
To this day, economists do not know how the economy works. Employment Theory and Profit Theory are provably false.#1, #2 The belief that economists can make a contribution to social welfare is patently absurd. It is just the opposite.#3
Well-informed people know by now that economists are not trustworthy scientists but stupid/corrupt agenda pushers.#4
#1 Macro for dummies
#2 Rethinking the Profit Law
#3 How to minimize econogenic outcomes
#4 Trust in economics as a science?
You say: “Example: relation between wages and employment. Sure, sometimes higher wages are associared wirh higher employment, but sometimes not. Very complicated, with you not remotely getting any of that, just repeating your same old nonsense.”
After 200+ years of research, this is what the representative economist has to say about one of the most fundamental relations of his subject matter. And he does not even realize that this absolutely vacuous statement is the open declaration of scientific bankruptcy.#1
As Feynman made clear: “By having a vague theory it is possible to get either result. ... It is usually said when this is pointed out, ‘When you are dealing with psychological matters things can’t be defined so precisely’. Yes, but then you cannot claim to know anything about it.”
And that is the simple fact of the matter, economists do not know anything about how the economy works. It’s all wish-wash. From this, though, follows that economists are not qualified to give economic policy advice.
“In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum)
Economists do not have the true theory. Their good luck is that in the political realm scientific qualities are not in great demand but propaganda and entertainment qualities are.
So, at an early stage in the development of their discipline, economists threw scientific principles out of the window and started think-tanking for some businessman/billionaire or some three-letter government agency. The Cowles Foundation for Research in Economics is one prominent example of this and it produced General Equilibrium Theory and many Nobel Laureates.
It is common knowledge by now that GE is one of the worst scientific failures of all time. However, what arrived at the general public is the impression that it has been rigorously proved by the finest thinkers with the most advanced mathematical tools that the market economy is a stable system and produces maximum welfare.
The Cowles Foundation is only the tip of the iceberg. It is unknown at present to which degree economics has degenerated to mere journalism/propaganda/agenda-pushing. It is a bad omen, indeed, that fake scientists like Paul Krugman are considered as thought-leaders.#2
If there is still some scientific spirit around in the profession, you have not been blessed with it. That much is absolutely certain.
#1 For details of the big picture see cross-references Employment/Phillips Curve
#2 Mr. Keynes, Prof. Krugman, IS-LM, and the End of Economics as We Know It