Monty Pelerin's World

Economics, Finance and Politics Through The Prism of Classical Liberalism

Why Obamanomics Will Not Improve The Economy

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

Friedrich Hayek

The economic programs and policies currently in place are truly astounding. I don’t think I have ever seen a more harmful economic environment for the country. While some of these programs started with Bush, the Obama Administration has advanced them to insane levels. Logic, economics, common sense and history must be defied to believe a recovery is possible in this environment. The nation’s standard of living will be substantially lowered unless changes in policies are forthcoming.

To understand why this economy cannot recover under these policies, it is necessary to differentiate between the macroeconomic and microeconomic approach. Arguably, macroeconomics is not economics, but that topic cannot be fully explored today.

Macroeconomics deals with aggregates, statistics and mathematical models. Macroeconomics purports to describe and explain the behavior

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