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The fictional world of economics we blithely live in

This morning on the national radio, the Australian Treasurer was explaining to the nation the issues presented in the December – Mid-Year Economic and Fiscal Outlook (MYEFO) – which is a half-yearly review of the fiscal statement presented in the May each year (mostly) and was released to the public yesterday (December 16, 2019). I will get into some of the detail presently. But every statement that the Treasurer made, every sentence, was a classic example of fake knowledge being touted as verity. The interview lasted a few minutes and nothing the Treasurer said was correct. It is clear that we live in a fictional world where some of the most important influences on our lives are so misunderstood in reality yet ‘understood’ in this fictional world that the economists, the elites, the serving politicians, and us perpetuate. I have always been perplexed by the dichotomy between our human ingenuity in some areas and our dumbness and ignorance in other areas. And I clearly understand we cannot know everything. But on matters economics, if I survey people, I am astounded at how much they claim to ‘know’ – words such as Zimbabwe, hyperinflation, and the rest of the myths – come of their lips with ease as if they are knowledge. It is a quite extraordinary situation.

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