How Laissez-Faire Economics Led To Recession

I do not own any of the printed material below. I just found this to be an incredibly profound article and articulate explanation of some of the economic woes we face in the world today…

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I do not own any of the printed material below. I just found this to be an incredibly profound article and articulate explanation of some of the economic woes we face in the world today…

http://www.huffingtonpost.com/jeff-madrick/laissez-faire-economics-inequality_b_5943056.html

http://www.huffingtonpost.com/jeff-madrick/laissez-faire-economics-inequality_b_5943056.html

The great nineteenth century economist, John Stuart Mill, writing well after Adam Smith, was skeptical that competition alone was the great regulator as Smith insisted it was in his invisible hand. He said that economics was by nature “hypothetical.” Its laws were not engraved in stone. If you looked around, wrote Mill, “custom,” which he used to describe many non-economic aspects of culture and behavior, was equally important. “It would be a great misconception of the actual course of human affairs to suppose that competition exercises in fact this unlimited sway.”

The ideas that governed the mainstream economics profession since the 1980s were turned into rules when they were at best only hypotheses. Rules are easier to deal with; ambiguity and uncertainty are shunted aside. But the world is not so simple, and good policy is scarce when a profession once dedicated to brilliant thinking and extemporaneous judgment to fit changing times turns to formula and ultimately cliché.”

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