In a comment to his earlier assessment of the OECD’s new economic outlook, Jasper is raising an interesting, almost philosophical question that I think is worth a discussion in its own right. He claims that –
Economists should study the economy so they can finetune it to suit the needs of the people living inside this economy. They seem to be studying the economy so they can promote policies that finetune the people to suit the needs of the economy.
I would argue that Jasper’s statement correctly captures the sentiment, but not the rationalised opinion, among a growing part of the European population. The disconnect is palpable. So the question seems to be whether our governing institutions (and those trying to capture the essence of reality for them) are not able to accurately understand the people’s true preferences, whether our institutions do not allow an accurate externalisation thereof, or whether this is not simply a matter of lack of understanding.