Paul Krugman of MIT has an OP Ed in today's ny Times.
He says that humans are hard wired to judge themselves in comparison
with others, with respect to consumption.
He also says "... consumer spending ultimately disappoints because
of habituation."
These two remarks attack two fundamentals of neo-classical consumer
behavior, i. e. (1) hat we are all independent of others and (2)
preferences are fully reversible.
I'm sure that these two fundamentals are still being taught at MIT,
and everywhere else neo-classical micro is taught, in spite of the fact
that Krugman and the rest know that they are, .... what should I call
it? A lie? What it is is crucial for continuing basic anti-human
legislation -- and Krugman et. al. are criminals for what they teach, as
distinct from what they know.
Aside from the neo-classical, the OP Ed itself is a classic of
deceit. After opining that we are "hard-wired" to emulate the better
off, he concludes by re-assuring that "Now there are faint hints in
popular culture -- though certainly not in the spending numbers -- that
Americans are becoming disallusioned with high conumption, that in years
to come the American consumer will become wiser and more prudent."
Is that possible, given that we are hard-wired for the opposite.
No, but it reassures his audience that all will be fine in the future.
What bullshit.
Gene Coyle
