The politics of economics – Lecture 3

Just finished trying to explain the difference between microeconomics and macroeconomics.  See Lecture 3.

In my earlier days, I liked micro and almost hated macro.  Now, I think I understand.  Micro is all about markets and voluntary behavior.  Macro is all about the politics of how to fix unemployment.  But you wouldn’t know this if you got bogged down by the heavy math used by modern macro.

To young students unaware of the perils of not having a job, macro must seem a sterile irrelevant exercise.  To veterans of the labor market, macro is a sobering experience.

I believe Keynes got it right because he never really promised too much.  But the politicians gave Keynes a bad name because the former used economics to get themselves into office, and then didn’t quite deliver.  Why?  See the macro debates.