Is a Budget Deficit Necessary for Economic Health?
Steven Hansen submits:Those looking for true empirical evidence in economics face frustration. It is fairly easy to accumulate evidence to support any theory. Economists have yet to develop a formula that both identifies and quantifies the billion points which are the sum of the economy. In the real world, any theory requires testing for proof. This test requires this one point of the economy to be adjusted according to the theory, and the other billion minus one points held constant. And that is the rub, all of our economic theory is based on billions of points moving simultaneously – and trying to “prove” that only one point made the economy better or worse. In economics, empirical “truth” is not much more than competing theories put forth by dogmatic camps. Proof is shown by taking a few points of historical data – not the billion points which would create a chaotic and unprovableComplete Story »