Other Economists in the Room
I came to the conclusion that Sociology should be the Major, and Economics the minor. Krugman put forth a great tool for people to learn about how we approach economics, but we really need a Social Scientist to explain the real world, and a mathematician to add that effect into our models. It is convenient to explain our social systems so simply in our current models, very convenient.
As you pointed out so well, the failure to place societal costs into any economic model means a failed model. Human nature goes so far, but it is ultimately what society does as a whole, and the effects of our models on society as a whole, that effects the macroeconomics. Not to say some of these variables are not taken into account, I am sure they are, however a slight variation in social perspective can have huge effects on the outcome of these economic models.
Unfortunately, adding society to the model means sharing the wealth a bit, and free-market capitalists could never have that.
Read the Article at HuffingtonPost
glen @ September 4, 2009
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