Alert readers will recognize that this has more in common with philosophy than with modern economics. But there’s a tale there, too. The only kind of economics that is worth a damn is philosophical, not mathematical or scientific. Real economics is philosophical – like history or literature – in the sense that it merely tries to observe and understand, not to manipulate people as if they were pawns on a chessboard.
The other kind of economics – modern, “scientific” economics – is a fraud. It pretends not only to understand an economy, but also to be able to improve it.
Modern economists have been at it for nearly 100 years: planning, organizing, theorizing, controlling, adjusting, pontificating, forcing, setting prices, suppressing interest rates and committing other acts of wanton economic vandalism. During that time, there has not been a single confirmed sighting of anything close to success.