The Pretence Of Knowledge

The Pretence Of Knowledge no ZeroHedge:

The "Pretence of Knowledge" was the title of economist Friedrich Hayek's 1974 Nobel speech.

“[this economic condition] has been brought about by policies which the majority of economists recommended and even urged governments to pursue. We have indeed at the moment little cause for pride: as a profession we have made a mess of things.”

Hayek's words in 1974 were not meant to describe today's condition, although they were extremely prescient. His hope was that the limits of knowledge would be recognized by the economics profession so that we would never reach our current situation. Hayek's call was for professional humility at a time when Keynesians arrogantly believed they could manage the economy and the business cycle.

The incorrect paradigm that has guided government policies for about 70 years is spent. Economies around the world have been crippled as a result of its incorrect prescriptions -- increased taxation, spending, debt and regulation. Even the highly socialistic Western Europe economies appear to be recognizing the error in such stimulus policies.

Cumulative abuses heaped on the economy weakened its resilience. We are at the point where the patient is so weak that additional bloodletting is likely to cause death. For any thinking economist, not blinded by the false Keynesian paradigm, it was obvious where this economy was going at least ten years ago. Our economy is broken and on the verge of collapse. Send thanks to most any economist that has served in government over this period or taught at an Ivy League school.