23 scholars who have received the Nobel Prize in Economics published a letter expressing their support for Democratic presidential candidate Harris and criticizing her Republican opponent Trump's economic plan, particularly his proposal for increased tariffs.
These economists stated, 'We believe that Harris would manage our economy better than Trump; we support her presidential campaign.' These Nobel laureates in economics had 7 more signers than those who signed a letter earlier in June urging support for President Joe Biden's re-election.
One reason to urge voters not to vote for Trump is his economic plan.
This time, these well-known experts acknowledged that Harris's and Trump's economic plans are not yet 'fully' known, but they stated that the two's words and 'past actions' are sufficient to illustrate the issues.
So-called economists are like people holding a small tube, observing an elephant, seeing some trivial details, adding their various biases and fantasies, and then collecting a pile of data, designing a few models, and attempting to simulate the complex matters of the entire social economy with a few very simple formulas.
In contrast to Marxism and Keynesianism, there are 'monetarism' and 'neoliberalism,' with Hayek and Friedman as their founding figures. They firmly oppose the first two schools, claiming that capitalism does not suffer from an incurable disease. The 'tremors' of capitalism are not due to an irreversible illness like 'Parkinson's syndrome'; it's just because they didn't sleep well last night. A few small pills will suffice. The reason past economic crises became uncontrollable is that those in charge of central bank monetary policy were too foolish. If they were replaced by such brilliant geniuses, economic crises would not occur at all; as soon as any tremors appeared, their monetary policy would correct it.
Aside from finding a group of elite economists to diagnose the economy and formulate monetary policy, any intervention in the economy by the government is unnecessary and will distort the market, making the situation worse.
Specifically, it means that the government should reduce taxes, minimize economic intervention, and avoid enacting legislation to protect laborers and employment relationships, as this makes it harder for employers to make profits. If employers find it difficult to profit, they will withdraw investment, and if everyone withdraws investments, it will lead to an economic crisis.
Cutting expenditures on social welfare such as healthcare and education is necessary for the government to save costs and reduce taxes for enterprises.
Monetarism advocates that during economic crises, no one needs assistance; the government should focus all its energy on rescuing financial institutions. This argument is naturally supported by the international financial forces of Wall Street and the City of London.
The supply-side school advocates for making investors profit; only by making money can there be investment, and without investment, there are no jobs. Thus, wealthy investors are eager to support this.
Whether it's monetarism's rescue of financial institutions, Keynesian consumption stimulation, or supply-side tax cuts, they ultimately lead to large-scale national fiscal deficits. To make up for the deficits, the government has to turn on the printing press, resulting in inflation that harms the middle and upper classes in society, particularly those in the lower tier of the elite society who hold substantial savings, bonds, and financial insurance.
The vast majority of economists come from this class because the unemployment rate among economists is so high that only those who are financially secure dare to enter the field.
And if it is the wealthy class, who would still study diligently? This ultimately determines the background of most economists.
Thus, absolute liberalism is always a powerful group among economists, who oppose any intervention measures and insist that enduring economic crises is the best choice; essentially, this is a process where the butt decides the brain.
Before we move forward, let's note that before the 18th century, Britain and other maritime powers engaged in overseas trade through state-authorized charter trading companies. Essentially, if a group of people wanted to develop overseas trade in a certain area, they would pay a 'charter fee' to the state, which would then use government orders to grant them monopoly rights over a specific area.
By the late 18th century, the rising bourgeoisie from the middle class and new industries demanded a share of the benefits from overseas trade, opposing the monopoly of international trade held by the old maritime bourgeoisie. Adam Smith's 'The Wealth of Nations' thus gained popularity, as his advocacy for the high efficiency of free competition opposed monopolies.
After the Industrial Revolution, a large number of traditional artisans were eliminated by modern large-scale industry, resulting in a terrifying social phenomenon of civil suffering. Thus, Malthus rose to prominence, as he argued that the suffering and elimination of the poor is a social science law, thereby providing a scientific basis for the government and the wealthy not to aid the poor.
When someone criticizes the moral decline and wealth disparity brought about by industrialization, Ricardo argues that industrialization will benefit everyone, just at different times and in different amounts, and continues to uphold the principles of free competition established by Adam Smith, providing academic endorsement for Britain's use of gunboat diplomacy to promote 'free trade' globally.
By the late 19th century, jealousy from the great powers towards Britain made List's 'theory of industrial protectionism' popular. He discussed how a late-developing country could use trade protection measures to cultivate its own industry and catch up with Britain.
The rise and fall of economic schools of thought are closely related to the strong political and economic forces, money, and public opinion behind them. Rather than being a pure science, economics resembles a combination of political lobbying for economic policies and endorsement practices. The most popular economic theories always resonate with the policies advocated by the most powerful political and economic groups.
So if you see a certain famous scholar's remarks in the news or online.
So please note that this is likely akin to influencers promoting products or charging for soft news on public accounts; after all, economists also like money.
At that time, some economists argued that this was determined by the economic supply and demand laws, and that an oversupply of labor naturally lowers wage levels. Of course, this statement is clearly inaccurate.
For example, if a person increases their working hours from 8 to 12 hours a day, the supply of labor in the market will increase by 50%, which should lower wage levels.
If raising wages can increase labor supply in a society; however, sometimes the opposite is true. For instance, if you double the wages of an African worker, they might save enough money for a month in half a month and then not come to work for the other half. Conversely, if you raise wages for a Chinese worker, they would be very happy to work overtime.
If lowering wages leads to a decline in labor supply in a society, sometimes the opposite is true. For example, if you reduce the wage level to a point that threatens a person's survival, forcing someone to work 14 hours a day to make ends meet, then raising wages at this point would lead workers to shorten their working hours.
Therefore, this issue must consider various factors, including race and culture; economists recognized this problem decades ago. Why do East Asian countries develop rapidly as soon as they seize economic opportunities?
Why do Latin American countries have unique advantages but remain stagnant?
A significant reason for this is the differences among people, so economists introduced a new variable. They believe that the stronger the incentive for a country's residents to respond to wage increases, the more beneficial it is for their economic development.#BabyMarvin传来最新消息