A couple of years ago, there was a small number of people, maybe a couple of hundred in the country, who studied the Great Depression and other financial crises, trying to learn which solutions helped and which didn’t, trying out models, writing scholarly papers and going to conferences to talk about their work in front of their peers. These people are experts. We keep them around because we might actually need them. Like now.
When the crisis arrives, their number can be augmented quickly with other people in the economics field, who can come up to full intellectual speed in short order. We call these people experts too.
Paul Krugman is one of the first group. He wrote a book in 1999 on the Great Depression, and updated it last year. Joseph Stiglitz came up to speed almost immediately. Their thinking, and that of others in their field, forms the basis of the solutions we need. Their reasons for their solutions are complicated and difficult to understand. For this purpose, we have a whole lot of intermediaries, people who can read Krugman and Stiglitz, and translate the rationales for the rest of us. These are a kind of expert, generalists who can read and understand complex things quickly and accurately, and can explain them to other people more clearly than the experts can. They are also helpful in working out the details of how to do what the experts think we should do. President Obama, anyone?
It used to be that we had people who served as the intermediaries between average people and the experts. Those intermediaries were unions, political clubs, and a wide variety of other groups. Journalists also played a role, as translators and explainers. With this cascade of knowledge, people know enough to make sensible decisions. In the legislature, we had staffers, who read this stuff and grasped it quickly.
That process is about the same today on the left. Unions still educate their members, for example. Political clubs are now blogs, but there is plenty of back and forth as people work to understand the theories. And many journalists are blogging too. Their input is very valuable, as we try to master new stuff. This is a great process. It really works if enough people are willing to invest the time and energy into the tedious task of understanding new and complicated ideas. Like we do here.
But that process has totally failed everywhere else. The stimulus bill is a perfect example. If you read, watch or listen to the corporate media, you learn that the important issue, the one worth talking about, is how the President packaged it. It’s the presentation, not the policy. Olbermann learned that from Beltway Bloviaters E.J. Dionne, and Howard Kurtz Thursday night. These people, and the rest of their breed, think the nation’s economic crisis is another contest, like the election. They are counting votes and arguing about optics. Optics? We’re heading down the economic drain and these fools are talking about their perceptions of the politics of the solutions?
Congress isn’t doing any better. The Democrats have apparently listened to the experts, and maybe want to do something, even if it’s weak tea, unless the Blue Dogs decide otherwise. The Republicans listen to their PR hacks, and let ideologues decide what they support. After all, ideology is more important than expertise.
These "leaders" act like they are behaving properly, when it is blindingly obvious that they are dancing like monkeys to some calliope only they can hear. Our leaders are distractions from the real problem. These people are clowns.
But what’s worse is that this is fine with the general public. Everybody believes they are entitled to have an opinion on the crisis: do we need a stimulus package, and what should be in it. The corporate media encourages this by covering the legislation like an election. Elections are about choosing politicians. By that logic, we can pick policy like we do politicians: Who has the best campaign. That is idiotic. We must all be idiots to think we are able to figure this one out, and even bigger idiots to let a bunch of PR hacks tell us how to manage this problem.
We are a nation of idiots led by clowns.



9 Comments







Get rid of the Federal Reserve. Any other solution will not be sufficient to fix this financial mess. The Fed caused the Great Depression and they are causing this one.
********************
” Remarks by Governor Ben S. Bernanke
At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois
November 8, 2002 “
” Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again. “
http://www.federalreserve.gov/…..efault.htm
Great post as always masaccio… I have a related albeit slightly OT question for you…
I just read over at Reuters that Obama is set to announce an economic advisory panel this morning. Krugman and Stiglitz are not on it. I have no idea who’s who in the world of economics, so I’m hoping you or someone else will take a peek at the panel and let the rest of us know if there is any real counter-balance to Summers/Geithner on the panel.
I agree wholeheartedly that we are in dire need of a real debate on economic policy. I think we’ve had some pretty interesting discussions around here for a few months now — but is Obama similarly encouraging discussion of a wide range of views? After Jane’s post yesterday that noted Summers’ influence, I am concerned that the only advice being given and received in the Obama administration draws from a fairly narrow point of view.
Ummm, yeah. One that’s based in the 21st century would be a huge improvement over what we’ve been hearing.
masaccio, keep at it. more of this.
Our Democratic leaders in the house don’t have their chops down and didn’t come up to speed and didn’t find spokespeople to advocate for this who could speak with expertise.
To the “experts,” described on the tail end of your fine article, a definition attributed to the late folksinger Gamble Rogers.
“An “ex” is a has-been and a, “spurt,” is a drip under pressure.”
Here’s a list of the members of this group:
I’d say it’s a pretty good list. There are a couple of really smart economists. Goolsbee is one of Obama’s buddies, a Chicago School guy with a twist. Tyson is another really smart person, more centrist, and we have Feldstein, more to the right, but supportive of the stimulus plan.
There are two Union people, and the tech people are good. We also get the head of TIAA-CREF, which is a huge pension plan for educators and other university people, and which has done pretty well (I hope, for personal reasons). Pritzger was considered for a cabinet post, Obama likes her. An acceptable group, for all that it doesn’t have either Krugman or Stiglitz, who as far as I am concerned are about the best we have right now. I think they may be more valuable from the outside. Groups have a strong tendency to move to consensus, and having strong people on the outside is a good thing.
As to whether they will counter the centrists on the inside, as I say, I think there is too strong a tendency to move to the center to provide a real counterweight. Maybe this group will surprise me.
Thanks for the response masaccio — I appreciate it!
And I would argue further that it is precisely this kind of attitude and ‘newz’ reportergery that leads to inflated self-importance and egotistical delusions like: “We create our own reality.”
If you judge ‘politics’ by whether or not you prevail in an opinion poll, then surely you believe that you have some sort of mighty powers if you win an election, stall a stimulus bill, or ‘capture’ a newz cycle.
But meanwhile, out in the world as we know it, you can’t live in a mirror that consists only of your self-reflected egoism.
The media has completely dropped the ball on the recent economic reporting, at least as dreadfully as they dropped Plame. I have to admit that I’m stunned and appalled.
(Rachel Maddow and – give him some credit – Tweety have actually done the best reporting that I’ve been able to spot, but the rest of it — including CNBC — is embarrassing. Just irresponsible and juvenile for the most part.
CNN is conducting polls on the stimulus.
I think this qualifies as empirical proof that we are a nation of idiots led by clowns.