We don’t think it’s possible or productive to blame the financial crisis on any particular ideology. Bush policy was far, far from the laissez-faire dogma his critics made it out to be. Conversely, we do have a market system in most areas, so to say we live in some kind of socialist state is wrong, too.
But Patricia Cohen at the New York Times is dismayed that the financial collapse hasn’t prompted academic economists to get on their hands and knees and beg for forgiveness. As she puts it, the “Ivory Tower” elite, still haven’t learned the lesson that they were wrong.
This exercise is silly. Not because they’re right and she’s wrong, but because she thinks it’s so obvious that her view has been vindicated, and that their has been invalidated. Of course, we’ve read similar arguments in more conservative publications on how the crisis proves beyond a doubt that government regulation is a failure (we’ve even made some ourselves!).
All this shows is that this kind of approach is a failure.
For some reason Cohen’s argument appears in the NYT Books section, so maybe that should tell you something.
(via Jeff Tucker)