Ron Paul: "I've Wasted My Life"
Yale Economics Professor's Groundbreaking New Work: Smiling Improves the Economy.
Critics around the globe are hailing the most important contribution to the field of Economics since General Theory, Yale Professor Robert "the Shill" Shiller's discovery that feeling good about the economy actually brings countries out of Depressions.
An influential Democrat who was also one of the world’s top-ten, highest-paid hedge fund managers last year thinks he knows which book is at the top of the White House reading list this spring: "Animal Spirits", the powerful new blast of behavioural economics from Nobel prize-winner George Akerlof and Yale economist Robert Shiller.
Judging by the upbeat economic message we have been hearing from the White House, the Treasury and even the Federal Reserve over the past six weeks, that is a shrewd guess. The authors argue that “we will never really understand important economic events unless we confront the fact that their causes are largely mental in nature”. Our “ideas and feelings” about the economy are not purely a rational reaction to data and experience; they themselves are an important driver of economic growth – and decline.
In a recent news conference, reporters asked Professor Shiller to explain the methodology of his research. Shiller coyly smiled, bringing the room of awed journalists to tears of joy. "We are saved!" shouted CNBC Business Analyst Erin Burnett.
The work of behavioral economics is so revolutionary that it has already garnered many converts as professors are hurriedly rushing across campuses worldwide to discuss its importance. Yet, here at Motley Fool, we have no long known about the sagacity of the esteemed Yale Economist.
His astute analysis can be traced back before the crash of 2007, which he accurately predicted using Mood Economics.
"Nothing I did (professionally) was ever part of the core theory (but) I had to downplay my own beliefs. I couldn't get up there and say a depression was coming, not in front of the students. I would have been considered unprofessional." - Robert Schiller
Ron Paul: I've Wasted My Life
Schiller's tremendous revelations have been hard to swallow for some, however. Congressman Ron Paul, longtime Libertarian and Gold Standard proponent, is left to contemplate years of misguided economic theory.
"Perhaps I should have stuck to the medical profession," he sullenly opined. "I delivered over 4,000 babies, you know. I was pretty good." When a reported inquired, "Do you think you could have delivered 6,000 if you had only smiled more," Dr. Paul broke down, sobbing uncontrollably. Even though we at TMF are happy to see his wacko theories discredited, we hope that he'll smile again one day. As Akerlof and Shiller have proven, our economy needs the happiness of everyone to survive.
Austrian School Devastated
In response, the marginal and outcast Austrian School has all but admitted that its work is now completely discredited and the Ludwig Von Mises Institute has closed its doors. Everything is being auctioned of, including a bust of Mises' head. Over the past 100 years they have foisted upon us their Libertarian free-market chicanery, although admittedly they have made a couple of lucky calls. Still their theories are now clearly obsolete.
Such works as:
The Austrian Business Cycle Theory
The Austrian Trade Cycle Theory
The Theory of Market Anarchy
The Economic Calculation Problem of the Socialist Commonwealth
Their radical analysis of Intellectual Property
And many other Austrian School ideas are so out of touch with mainstream academic thought it is foolhardy to even waste our time with them. We can only hope Schiller's studious and thought provoking work on Mood Economics will finally send the Austrian School into the trash bin where it belongs.
UPDATE: In the face of Schiller's smashing success, the Austrian School has responded by renaming their Business Cycle Theory the "Super Happy Fun Theory of Interest Rates," in a desperate attempt to gain wider acceptance among the intellectuals. This reporter overheard Paul Krugman at dinner reacting positively to the new Happy Fun Theory as he remarked to guests "It sounds neat, but what the heck is an 'Interest Rate?'"
David in Qatar