Terrific article. You're correct: Neither journalists nor their readers have even a rudimentary understanding of economics. It's becoming increasingly obvious that the subject should be taught at the high school level so citizens won't be so easily tricked by propagandists. But in Canada, there is little doubt that this mandatory course, developed by government and teachers' unions, would be presented as, "ECN 101: Introduction: Why Capitalism Must Be Abandoned."
It's just generally unknown that exogenoud changes in individual prices even of an important group of prices ("groceries," "tradables") cannot cause inflation unless the central bank allows it to do so.
One reason this is hard to undestand is that often a central bank will have good (real income maximiaing) reason [about half of Radical Centrist posts aims at explaining this] to allow some extra inflation in response to a price shock. So in a pure post hoc ergo propeter hoc view, it looks like the price change "caused" the inflation. With a certain expansive view of "cause" that woud be right.
“It is the job of the media to keep the citizenry informed. When the press is biased, ignorant, or lazy, the system begins to fail.”
True, true. But the media is also just a group of citizens who vote on political issues. The media is biased but certainly not ignorant, nor lazy—their words are carefully chosen.
Moreover, the media knows that its readers (most of them at least) are ignorant on important subjects like economics and political science.
But the media always has a dog in the fight. Readers need to do a better job of understanding that reality. But again, readers have better things to do than read up on economics or political philosophy. That is why liberty must be protected from its citizens for its citizens.
Terrific article. You're correct: Neither journalists nor their readers have even a rudimentary understanding of economics. It's becoming increasingly obvious that the subject should be taught at the high school level so citizens won't be so easily tricked by propagandists. But in Canada, there is little doubt that this mandatory course, developed by government and teachers' unions, would be presented as, "ECN 101: Introduction: Why Capitalism Must Be Abandoned."
Thanks!
We need look no further than the recent NYC mayoral election to see the effects of economic illiteracy. Promise "free" stuff and win elections.
It's just generally unknown that exogenoud changes in individual prices even of an important group of prices ("groceries," "tradables") cannot cause inflation unless the central bank allows it to do so.
One reason this is hard to undestand is that often a central bank will have good (real income maximiaing) reason [about half of Radical Centrist posts aims at explaining this] to allow some extra inflation in response to a price shock. So in a pure post hoc ergo propeter hoc view, it looks like the price change "caused" the inflation. With a certain expansive view of "cause" that woud be right.
Which of your articles would you recommend if I, or anyone for that matter, wished to understand this better?
Here is one where I dscuss why the Fed should sometime seek more inflation in contrast wiht Cochrane.
https://thomaslhutcheson.substack.com/p/cochrane-on-the-fed
Thanks.
“It is the job of the media to keep the citizenry informed. When the press is biased, ignorant, or lazy, the system begins to fail.”
True, true. But the media is also just a group of citizens who vote on political issues. The media is biased but certainly not ignorant, nor lazy—their words are carefully chosen.
Moreover, the media knows that its readers (most of them at least) are ignorant on important subjects like economics and political science.
But the media always has a dog in the fight. Readers need to do a better job of understanding that reality. But again, readers have better things to do than read up on economics or political philosophy. That is why liberty must be protected from its citizens for its citizens.
"The media is biased but certainly not ignorant, nor lazy—their words are carefully chosen."
As you say, they're just a group of citizens so they're just as likely to be ignorant as anyone else. It's just a bigger problem when they are.