One of the best things that the government can do for the economy is to lie about it. Strange as it may sound, the economy is based upon our own perceptions. If people think the markets are going down, then they are going down whether they are declining in real terms or not. We kind of expect it from our leaders today. During the oil crisis in the 70s, President Jimmy Carter tried to be realistic about the economy and it did not go well for him in regards to the public.
The bottom line is that corporations act in their own material self-inerest. They are not out to provide for you but get your money. It is hoped that by acting in their own self-interest, individuals will benefit everyone; however, this is not always the case. We need a government regulating the economy for when those self-interests clash with the common good.
Now what doesn't always act in material self-interest is people. So no, Politicians are not completely predictable by economics.
Last edited by Banefull; 12-03-2010 at 07:33 PM.
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12-03-2010, 07:31 PM
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