June 06, 2006

Predictable

File under 'obvious but true'

Having spent three decades around model builders and reading their studies, I have concluded it is infinitely easier to obtain government funding to build a mathematical model likely to show the need for more government activity and spending rather than less.

[...]

Models of the economy have been similarly politicized. During the 1960s and ’70s, Keynesian models were all the rage and received considerable government funding, no doubt partly because most showed more government spending and taxing was good for the economy. By the late 1970s, it became obvious these models were wrong and their prescriptions led to stagflation. The monetarists and supply-siders had answers, but little in the way of government funding was provided for their models, since they tended to show less government taxing and spending had beneficial effects.

Posted by Old Nick at June 6, 2006 05:24 AM | TrackBack

 

 


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