The Citizen, 1986-12-10, Page 16PAGE 16. THE CITIZEN, WEDNESDAY, DECEMBER 10, 1986.
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The International Scene
Economics - not your ordinary science
BY RAYMOND CANON
It is a safe bet to say that you do
not live beside an economist - there
are not too many of us around by
thewayandwearenotknown as
the most exciting of people, either
as neighbours or as anything else
perhaps.
We deal in a study that few
people claim to understand for few
people have ever got around to
taking even one course in it. We
are, in addition, the bur of a
numberofjokes. Oneofthebest
known concerns the American
president who said that the next
economist whom he hadcome to
the White House was going to have
only one arm. When asked why he
would say such a thing, he
exclaimed that he was tired of
economists coming to him and
saying, ‘ ‘on the one hand this ... on
the other hand that ...”
Then there is the report.thatto^prices if we ignore it. Prof.
Trivial Pursuit has come up with a Friedmandid notdothis single
version for economists. There are
30 questions, so the story goes,
with 300 answers and the answers
change every month. As for
myself, 1 like the story of the
college graduate who returned
after 25 years to attend a reunion
party. The firs * person whom he
met was his old economics profes
sor. After a short conversation, the
former student asked if he could
seen an economics exam of that
year. The professor took him to his
office, showed him his latest exam.
The student exclaimed. “This is
the same exam that I tried 25 years
ago.” “Yes, 1 know,' replied the
professor. ‘‘Butall the answers
have changed.”
Jokes aside, ours is a world-wide
profession. There are economists
everywhere, even in the Soviet
Union and China and whether the
Kremlin listens any more to its
economists that our government
doestooursisamootpoint. One
thing that you have to keep in mind
is that ours is very much an inexact
science and if we have not yet got
around to curing such things as
inflation, neither has medical
science found a cure for the
common cold, although much more
money has been spent on the latter
than the former.
One things is certain. Econo
mists, both past and present, have
had a great deal of influence on how
our society operates, not to
mention our governments. The
very fact that we have not had a
serious depression since the 1930’s
goes back, Ibelievc, tothe theories
orperhapsthemost prestigious
economist of the entire century,
John Maynard Keynes of Great
Britain, who urged governments to
large-scale deficit financing as a
means of stimulating the economy
into recovery. It worked remark
ably well and forms the corner
stone of many countries’ economy.
We have, perhaps, even gone a bit
overboard in this matter as we have
only to witness the 30-plus billion a
year budgetary deficit that Canada
is saddled with. However, we are
not alone in that regard.
I often get the impression that
many people still feel that money
grows on trees; there is an infinite
quantity of it. That has got us into
no end of trouble and it took
another famous economist, the
American Milton Friedman, to
remind the world of the quantity
theory of money and what happens
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1985 Pontiac Parisienne, 4 dr.,
air conditioning
1984 Buick Park Avenue, 4 dr.,
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handedly but he is considered to be
the head of the monetary school
which concerns itself with such
things, primarily I might add, as
the amou nt of money in circulation.
We have even been influenced
by a Russian economist, Kondra-
tieff who earlier this century gave
considerable credence to a 50-year
business cycle. Every once in a
while I find his name being
dragged out to prove or disprove
some specific theory but it all goes
to show justhow wide-spread is the
influence of economists every
where. Incidentally I have no idea
Continued on page 17
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