Tag Archives: economic models

What is Fantasy Free Economics?

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What is fantasy free economics? Fantasy free economics is standard economic dogma with all fantasy removed. After that natural law is added in. All of the erroneous assumptions are removed from standard dogma and corrected assumptions are added back in. How much of economics dogma is fantasy? Very little of it is not rooted in fantasy.

What is an example of a standard economics fantasy? The biggest one is John Maynard Keynes’s fantasy of a straw man. A straw man is an imaginary non biased government employee charged with implementing a government economic policy. Nature does not provide an entity in the form of a straw man. Even if it is not mentioned in the text of the economic models, the straw man is assumed present. Just mention that one item and it is enough to debunk any stimulus program.

What is an example of an erroneous assumption? In traditional dogma an individual is seen as an autonomous freedom seeking entity who makes independent decisions. The discipline of evolutionary psychology is great source of insight in this area. People are actually not natural freedom seekers. From birth forward, humans use freedom like an asset. Freedom is bargained away for comfort.

Fantasy free economics also honors transactions where money is not exchanged.  Trading freedom for comfort is a transaction where value is exchanged. It is also the first economic decision a person makes. It is also a transaction that is repeated many times over a lifetime.

These are just a few important differences. There are quite a few more.

This is all with respect to aggregate economics. Micro economics is just fine.

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

 

The Inconvenient Facts

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13603998-Seamless-with-algebra-symbols-for-background-or-wallpaper-design-Stock-VectorThe smartest thing an economist can learn is that economic models have no predictive value. Government interventions have an impact but the impact is in no way related to any intended outcome. Economists can keep records just as accountants do. There is some historical value in using statistics to compare one time period with another.

I can make accurate forecasts because my work is euphemism free and I understand that self interest is the dominate incentive in every human interaction and this is part of the dominance and subservience system that governs the universe, at least the part of the universe we live in. Peace and love are not as pervasive as one might believe. There are pockets of love and peace on earth but they are in isolated areas.

When I make a forecast such as most Americans are going to lose everything they own. It is not based on some chart I am watching. Charts are good for understanding where we are in a process but what causes the situation cannot be reduced to numbers,

Suppose you know a drunk driver who, everyday chugs a fifth of whiskey, then gets on his motorcycle and races 200 miles and back on the freeway. My prediction would be that his live is going to real short and he is probably going to kill a number of other people on the way to dying himself.

I know without a doubt that all  government economic initiatives since the 1980s have prevented all markets, not just financial markets from clearing.  This will destroy an economy and it has destroyed ours. Since 2008 TARP and Quantitative easing have forced wealth and income into the higher income brackets while impoverishing everyone at the bottom.  The more unbalanced an income distribution becomes, especially when it has resulted from fraud and deception, the more accident prone an economy is. Another way to look at it is that the rich by using government as a tool, kill off all of their customers.