The Science of Economics – How Economists Are Making Our Lives Easier, Simpler, and More Prosperous Than Ever Before

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The science of economics is ushering in a new age of prosperity. Scientific breakthroughs in the way we manage our economy are fundamentally changing how the markets work, and this is making it simpler than ever before for businesses and consumers to navigate our economic environment. This article covers some of the cutting edge advancements in economic management that are making our markets friendlier to investors, consumers and businesses alike.

Engineering Risk Out of the Market

Since the financial crisis of 2007-08, our economic officials have made a concerted effort to reduce market risk, and create a safe investment environment for both institutional and retail investors. As part of this effort, our Federal Reserve bank has introduced a range of monetary stimulus programs, most notably a series of rounds of Quantitative Easing, a process in which central banks buy up financial assets from a struggling financial sector. Quantitative Easing stimulates the economy by relieving the financial sector of toxic assets, lowering interest rates, and injecting money into the economy. The effects of this monetary easing have been nothing short of outstanding. Since the implementation of these policies, our stock market risen to over 2000 with very little volatility, and has been supported by a resilient trend line. This investor-friendly stock market rally has made both retail and institutional investors rich, helping many to recuperate their losses from the recent crash.

In addition, interest rates have continued to fall, making capital available to businesses and our government, and fueling economic growth.

10 year

And despite this continued economic growth and lowering of interest rates, inflation has remained historically low.

Inflation

Fostering Economic Growth

After capitalism self-destructed in 2007-08, economists realized that the economy had to be more carefully managed in order to sustain long term economic growth. In accordance with the advice of top economists such as Dr Alan Blinder and Dr Paul Krugman, our government introduced a series of fiscal stimulus programs such as TARP, Cash For Clunkers, and a Jobs Bill. These programs injected much needed capital into a dying economy, helping to jump start economic growth and get the money flowing again. In combination with our Federal Reserve’s Quantitative Easing programs, these measures have done wonders for our economy, with non-farm payrolls rising consistently month on month for the last five years. By any measure, these programs have been a stunning success.

NFP

What Does the Future Hold?

In order to continue to enjoy the fruits of scientific economic management, we need to further delegate policy making decisions to the economists who best understand the theory and practice of economics. I worry that populist legislation such as Ron Paul’s controversial “Audit the Fed” bill could one day compromise our independent monetary policy by bringing it under the control of politicians rather than economic experts. Any economist will tell you that the division of labor is essential to economic growth, and this principle applies just as strongly to the field of economic planning. Policy decisions need to be made by experts only, so that we can continue to enjoy the growth and prosperity that we have become accustomed to.

1 COMMENT

  1. “I worry that populist legislation such as Ron Paul’s controversial “Audit the Fed” bill could one day compromise our independent monetary policy by bringing it under the control of politicians rather than economic experts.”

    lol. Could we have a signed affadavit that these experts only have only the public good at heart?

  2. Economists are so important that they get NOBEL PRIZES. This means they are SERIOUS experts, not big talker politicians like Ron Paul, pandering to extremist libertarians and racists.

    The private sector PROVED that it could not regulate itself. What did banks do with their powers of lending? First they WOULDN’T lend to blacks and then they WOULD! And BOTH of these acts were extremely racist!! So why shouldn’t banks be controlled by the federal government? Well, that answer is EASY…because banks are doing GOD’S WORK and are run by top economists. If bankers had done anything wrong in 2008, Obama would have put them in jail. Instead, the Fed and other government agencies bailed them out and nobody committed any crimes.

    GM and other companies? Not so much- they had to be saved. But all of these interventions generated profits for the government. Who can say that about the private sector?

    Economists from top universities are the architects of our prosperity and financial system. Stop questioning them; they are experts with advanced degrees. Just keep investing money into the stock market and putting it into the banks. History has proven that this generates maximum return.

    Ignore what short sellers and terroristic speculators say, what extremist politicians claim about the banking system, Fed, and economics. These people are racists and anti-semites, clinging to gold and guns. The best course of action is to TRUST official sources, including top economists.

    • Economists know nothing about the economy.

      What the economy needs is direction from a panel of experts from every academic field, economists included. Only a consensus would provide a fair and balance economy that benefits everyone. Otherwise, we would continue to get unfair and unjust inequality that we deserve for being so short-sighted.

  3. “Policy decisions need to be made by experts only, so that we can continue to enjoy the growth and prosperity that we have become accustomed to.”

    Above…..only to be enjoyed by top 0.5% and rest 99.5% go to docks, become jobless, become refugee, retire early and live penurious life and

    HAHAHA – this article is a JOKE….

  4. That 2k tsunami. It will definitely make fukushima look like a walk in the park when it hits the shore.

  5. I JUST WANT TO DIE SO THE RICH DEMOCRATS/REPUBLICANS CAN HAVE IT ALL!!!

    Do your part and die for the rich.

  6. Listen and look around. Look at all the great things you can get from China that is such a must in our daily lives. Without the genius of off shoring, how could we ALL have a slicer and dicer in every kitchen?

    To those ungrateful people that are calling this site a joke and cant see their nose in spite of their faces I have to shake my head and suggest watching good morning america and then they will see the truth of what is written in these pages.

    Everything you need to know is on TV, don’t blow it.