Barry Ritholtz rips Chicago School economics

What Barry Ritholtz says.

Barry Ritholtz on his Big Picture economics blog says the Chicago School of Economics theory has been completely discredited. The whole note is worth reading, just click through the link.

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Chicago School Ain't Quite Dead

We have Obama's Goolsbee and others who are clinging to many of those practices. I wonder if any of them has even bothered to read an actual trade agreement including Obama's USTR pick?

The Bloomberg article is also worth reading.

I'm starting to like this Barry Ritholtz, dead on!

I first encountered the Chicago theory in law school. The Chicagoists somehow read into law a market efficiency component that was never there. I recoiled against it — not because of the libertarianism, which I embraced. Rather, it seemed a backdoor way to circumvent democracy, and force into the legal system rules that were never debated, voted on, or agreed to by a representative government. I found the extremist legal theories of Judges like Richard Posner and Frank Easterbrook intellectually repulsive. They were undemocratic, anti-representative government. When I told a professor that the law and economics movement was an attempt at a political coup, he laughed and said, try to stop it

When are we going to have the make it go school of economics? That's my motto, what works and by the statistics and history figure out what works and what does not. Get these philosophy kings who are simply reinventing some religion or justification for their own unbridled greed and power grab where they belong for so often they are spewing pure fiction.

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