At Least They Know How Little They Know

There’s an interesting piece in the Boston Globe today on the failure of mainstream economics to predict the current recession and what it means for the future of their profession. Unfortunately, it seems they might be learning the wrong lessons:

Robert Lucas, an economist and Nobel laureate at the University of Chicago and a champion of the rationality of markets, doesn’t see much fundamental change coming out of the crisis, either. What it has reminded us of, he argues, is simply the impossibility of seeing these events in advance.

I heard Arthur Laffer make this point recently–that he can’t predict what would happen nine months from now. But some people (cough, cough) actually did see it coming, and for them this could be the perfect opportunity to take back the economic mainstream, before the cancer of statist central planning can take hold. Maybe its time some of our so-called experts read a little introductory Hazlitt or Rothbard.

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