The Wizards
10th October 2018
ZMan points the finger.
In the 1980’s, one of the great puzzles for conservatives was how left-wing economists could not bring themselves to acknowledge the obvious. The Soviet economic model was a failure in absolute terms, as well as relative terms. Even long after the Soviets collapsed, guys like Paul Krugman remained puzzled by the inability of the communist system to keep pace with the West. His answer was that the Soviets either lost their will or lacked the moral fiber to make revolutionary socialism work in the face of capitalist cynicism.
As Greg Cochran has pointed out, the failings of socialism were obvious to anyone willing to look at what was happening behind the Iron Curtain. Once the Soviet Empire fell, it was undeniable, but economics never paid a price for being so wrong. In fact, the status of the field went up in the years following the Cold War. Nobel Prize–winning economist Joseph Stiglitz become something of a shaman to the ruling class, despite a miserable track record. He’s another guy who thinks the morality of socialism should make it work.
Economists are like TV weather people — they are wrong more often than not, often by quite a bit, yet people still turn to them for advice … because they’re the only people doing what they do, and people will grasp at straws when straws are all that’s available.