This is the first installment of what I hope is going to be a regular Monday feature.
I always find it instructive to keep track of the money since I think it explains a lot about politics.
There are 2 major interrelated economic stories moving in the background. One is the question of stimulus and the recovery of the ‘Main Street’ economy and the other is the question of deficit reduction and austerity particularly related to Social Security.
What relates these 2 stories is the abandonment by modern economists of Keynesianism. If you haven’t already, you should really read Krugman’s How Did Economists Get It So Wrong? from September of 2009 where he describes the irrational theories of the two main trends of academic economics, the salt and freshwater schools.
To me ignoring the proven facts of Keynesian Economics makes about as much sense as a biologist rejecting the ‘Theory’ of Evolution and Genetics. I suppose it’s possible to do good and rigorously academically grounded work but you’re really rejecting everything that makes your ‘science’ umm… ‘scientific’, which is to say predictive of measurable future results.
Just because your second derivative (in the calculus sense) quant guy can give you a value for the change in the slope of a curve doesn’t make it anything but mathematical masturbation unless your model bears some relation to reality.
Anyway, below you will find some stories I’ve collected from the Business section of Yahoo News. Just because some of these guys are rich doesn’t mean any of them are smart.
Monday Business Edition is an Open Thread
1 India rocked by strike over fuel prices
by Giles Hewitt, AFP
1 hr 14 mins ago
|NEW DELHI (AFP) – An opposition-led strike over fuel price rises disrupted life across India on Monday, triggering transport mayhem and sporadic violence in major cities where schools and businesses closed down.
Flights were grounded in commercial airline hubs such as Mumbai and Kolkata, while protesters attacked buses, blocked roads with burning tyres and organised sit-down protests on inter-city railway links.
Police were out in force to prevent any large-scale unrest during the day-long strike called by the main opposition Bharatiya Janata Party (BJP) and leftist parties in a show of strength against the Congress-led government’s reform programme.