A Nobel laureate explains why we get the bad economic policies we deserve

BOOK REVIEW

Economics for the Common Good, Author: Jean Tirole.

By Eshe Nelson – The relationship between economics and politics is starting to unravel. Over the past year, many have sought to explain Brexit, the election of Donald Trump, and the rise of far-right and far-left politics in Europe using economic arguments. But it’s becoming clear that economics alone does not explain the situation. If the questions at the root of public life are no longer answered by the famous political dictum, “It’s the economy, stupid,” where does that leave economists?

First we have to make sure people respect intellectuals. For that, the intellectuals have to do the right thing. Then, you have to limit frustrations. People who voted for Trump, or Brexit, or Le Pen and Mélenchon in France are by and large very concerned about their future with robots, with rising debts, with inequality and unemployment. We have neglected some people, the losers of globalization, and we have a society that’s more and more unequal. It might get worse, unfortunately, with new technology.

When people are afraid or upset, they also tend to dismiss their current governments and the experts. They want a big change, which is often supplied by populists who offer fairytales and the wrong policies. People are trying to grab something that will give them hope.

.. No, we are not moving in the right direction. more>

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