Thursday, September 30, 2010

America’s China Bashing: A Compendium of Junk Economics

by Michael Hudson from his blog.

The author attempts to cut through the fog of economic thinking (propaganda?) that mainstream US economists put out to shape economic and political policies. It appears to me that the "dismal science" of economics is so little understood because the financial experts of the ruling class want it that way. This may sound a bit paranoid, but it certainly makes sense to me. I think that they understand it very well, and they use their knowledge and our ignorance to their benefit. 

Anyway, Hudson makes a rather bold claim: 
I realize that balance-of-payments accounting and international trade theory are arcane topics, but I promise that by the time you finish this article, you will understand more than 99% of U.S. economists and diplomats striking this self-righteous pose.
I understand about 50% of his arguments, but enough, I think, to feel that he knows his subject well. His article suffers a bit from a lack of proofreading to make it easier to read, but that is a problem for all bloggers who dash off material under time limitations with little compositional support. I think the main problem with Hudson is that he only talks to other academics.

I feel that what is most urgently needed are writers who can explain economic issues in terms that ordinary people can understand. Board and computer games could be designed to illustrate many basic concepts and issues in capitalist economies. The game of Monopoly is somewhat useful, but is much too simple to explain very much.

For an author who writes to a more ordinary audience, I recommend another article I featured today by Matthias Chang.