This article first appeared at The McAlvany Intelligence Advisor on Wednesday, May 20, 2015:
It’s no surprise, really. Most mainstream economists look at the world through Keynesian lenses, they attend the same conferences, read the same reports, are employed by companies in the same industry, hold degrees from the same universities, and are rewarded for having a view that doesn’t stray from the norm, even if that view is wrong. It’s a perfect reflection of the herd mentality: the impulse or tendency toward “clustering,” reflecting the need for conformity. It’s how economists make weathermen look good.
If their view turns out to be wrong, they adjust, slowly. If they are challenged or threatened,