Yoshi: Craig, I know that Keynes said that economists should be like dentists who relieve the pain of patients. If an economic policy is right one, we can boast we are dentists of national or regional economy. But, it is possible that a policy is wrong or misplaced. Then, we suffer side-effects. Economic policies should be tested by (1) experiences (consequently by history and evidence) and (2) theory (deeper understanding of the mechanism). I am afraid so many people like to talk about policies and contend that they are right to claim it, but history tells they were often wrong.
One of recent history is the failure of “reflationists” who claimed reflation policy (claiming to bring up inflation rate to 2% per an by working on the expectation of the people). Seven years of Abenomics and quantitative easing of “another dimension” (Kuroda) proved that all expectations of reflationists had no basis.
I do not say that Craig claims reflationist policy. I guess you are against it. What I want to say is policy without theory has a high risk to embrace serious side-effects out of imagination. Resolving problems in economy is much difficult than curing some kind of diseases. Are you sure that you can be a good dentist?
Me: Thanks for the reply Yoshinori. The policies I’ve advocated here for years will:
1) beneficially deflate prices and increase purchasing power for all economic agents,
2) end poverty,
3) enable the integration and accomplishment of the dearest aspects of traditionally opposed economic perspectives (left-economic democracy and right-greatly reduce the sting of high taxation and the theft that re-distributive taxation actually is) and
4) enable us to direct consumer, industrial and fiscal policy toward green ecologically sane goals and thus have a chance to survive the existential threat of climate change.
That’s the removal of four infected wisdom teeth and the fitting of two brand new full denture implants.