{"id":7663,"date":"2010-11-06T16:42:20","date_gmt":"2010-11-06T20:42:20","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=7663"},"modified":"2010-11-06T16:42:48","modified_gmt":"2010-11-06T20:42:48","slug":"economics-finances-might-be-sciences-if-it-weren%e2%80%99t-for-people","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/7663\/economics-finances-might-be-sciences-if-it-weren%e2%80%99t-for-people\/","title":{"rendered":"Economics &#038; Finances Might Be Sciences, If It Weren\u2019t for People"},"content":{"rendered":"<p>Alex Pollock\u2019s contribution in <em>The American<\/em>, a publication for the American Enterprise Institute (AEI), is <a href=\"http:\/\/www.american.com\/archive\/2010\/november\/is-economics-a-science\" target=\"_blank\">much needed medicine<\/a> for the regulatory fever about to be unleashed when the <a href=\"http:\/\/blogs.law.harvard.edu\/corpgov\/2010\/07\/21\/dodd-frank-act-becomes-law\/\" target=\"_blank\">Dodd-Frank \u201cfinancial reform\u201d bill<\/a> is implemented.<\/p>\n<p>The key to understanding boom-and-bust cycles, according to Pollock, is realizing the limits of a mathematical model&#8217;s ability to predict the future.\u00a0 To quote Pollock quoting a colleague, \u201cThe model works until it doesn\u2019t.\u201d\u00a0 That is, until someone falsifies the model by acting in a way contrary to the model\u2019s assumptions.\u00a0 Then everybody who uses the model is out a lot of money.<\/p>\n<p>So, if profit-hungry businesses can\u2019t figure out a way to avoid losing money, what in the world makes the denizens on Capitol Hill think they can create a federal agency with such powers?<\/p>\n<p>Hubris and stupidity.\u00a0 Political cultivation of those qualities is a science unto itself.<\/p>\n<p><strong><span style=\"text-decoration: underline;\">Weekend Bonus Link:<\/span><\/strong> For another theory of the business cycle, <a href=\"http:\/\/mises.org\/daily\/672\" target=\"_blank\">click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alex Pollock\u2019s contribution in The American, a publication for the American Enterprise Institute (AEI), is much needed medicine for the regulatory fever about to be unleashed when the Dodd-Frank \u201cfinancial reform\u201d bill is implemented. The key to understanding boom-and-bust cycles, according to Pollock, is realizing the limits of a mathematical model&#8217;s ability to predict the [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2039,2040,2038,562,1983,1141,300],"class_list":["post-7663","post","type-post","status-publish","format-standard","hentry","category-posts","tag-aei","tag-alex-pollock","tag-business-cycle","tag-economics","tag-finance","tag-financial-reform","tag-regulation"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=7663"}],"version-history":[{"count":5,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7663\/revisions"}],"predecessor-version":[{"id":7668,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7663\/revisions\/7668"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=7663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=7663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=7663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}