Sunday, January 18, 2009

The Disconnect of Economic Measures

So often, economists focus on the wrong measures and end up with the wrong arguments and then wonder why people are unconvinced and feel differently.  Economists focus on measures like gdp, employment, and inflation, when what is important to people is gdp per capita, employment over workforce growth, and real wages.  Their economic measures are important and have their place for a country, but are not nearly as important as these more relevant measures to people.  A country may grow even while life becomes increasingly tough for people.  Economists too often feign cluelessness about this, and consider it whining.  They are just using the wrong measures and should know better.  

Often these errors, innocent or not, are made promoting an agenda or view favorable to theirs.  Economics suffers from political bias more than most fields because arguments can be put together so easily that appear meaningful while ignoring more relevant conflicting information, stretching facts to fit desired conclusions.  It takes advantage of the fact that most people seek to confirm their biases rather than analyze arguments.  

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