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October 30, 2006


Joshi Chetan Kishor

Dear Sir,
It is good to criticise the subject you are dealing in. However, it still remains improper to falsify the true fundamentals that we have learned so far. The stock market crash can be easily explained by our laws of demand and supply.

It simple situation of supply exceeding demand resulting fall in prices and fall in trade volume. Even at Macro level the zero sum game of stock exchange has puposes like liquidity to investors and employment to brokers. Ignoring it may not harm a subject called economics. Thanking you.
Learner of Economics
Joshi Chetan

John Konop

Economists Are Destroying America

Economists, politicians, and executives from both parties have promised American families that “free” trade policies like NAFTA, CAFTA, and WTO/CHINA would accomplish three things:

• Increase wages
• Create trade surpluses (for the US)
• Reduce illegal immigration

Well, their trade policies have been in effect for about 15 years. Let’s review the results:

• Declining real wages for 80% of working Americans (while healthcare, education, and childcare costs skyrocket)
• A record-high 46 million Americans who don’t have health insurance (due in part to declining wages and benefits)
• Illegal immigration out of control
• Soaring trade deficits, much with countries that use slave and child labor
• Personal and national debt both out-of-control
• Global environments threatened by lax trade deal enforcement

Economists Keep Advocating Policies That Aren’t Working

Upon seeing incontrovertible evidence of these negative trade agreement results, economists continue with Pollyannish blather. Some say, “Cheer up! GDP is up and the stock market’s doing fine.” Others say, “Be patient. Stay the course. Free trade will raise all ships.”

Even those economists who acknowledge problems with trade agreements offer us only half-measures—adjusting exchange rates, improving safety nets, and providing better job retraining. None of these will close the wage gap in America—and economists know it.

Why Aren’t American Economists Shouting From Street Corners?

America needs trade deals that support American families and businesses in terms of wage, environmental, and intellectual property abuses. Why aren’t economists demanding renegotiation of our trade deals? There are three primary reasons:

• Economists are too beholden to corporations and special interests that provide them with research grants.
• Economists believe—but refuse to admit—that sacrificing the American middle class is necessary and appropriate to generate gains in third world economies.
• Economists refuse to admit they make mistakes.

Economic Ambulance Chasers

Now more than ever, Americans need their economists to speak truth and stand up to their big business clients. Instead, economists sound like lawyers caught chasing ambulances: they claim they’re “doing it for our benefit”.

Dave Iverson

"Beware of Economic Fundamentalism," by Fred Argy, covers the main bases for effective criticism of "economic fundamentalists." And maybe, John, it is these to whom you need to address your criticism. Rather than saying Economists are destroying... maybe you ought to be saying Economist are not working hard enough to counter the chants of "economic fundamentalists" who, along with political ideologues are destroying....

Here's a link to "Beware of Economic Fundamentalism: http://www.australianreview.net/digest/2003/03/argy.html

Question remains open as to "who" are the fundamentalists and who are in other camps.


You do not seem to know the difference between models and Theory. You really do not have a clue. Maybe you sould really talk to an economist ignore the libertarian and conservatives that also misunderstand general equilbrum to me free markets is the only and best way to go. Most economist are not as conservative as you would think. Also when you talk to an economist make sure you are talking in terms of positive and not normative arguments.

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