The poverty of economic history
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The biggest problem with governments is that they are run by politicians whose first concern is the electoral cycle. The second biggest problem is that these politicians tend to have advisors with economics degrees from top universities where the economic history courses have limited appeal alongside the finance-oriented courses that are viewed as ‘hard science’. It is for this reason that history repeats itself as governments do not learn from previous mistakes. The fact that Paul Krugman feels compelled to write an article in the IHT today defending the case for a large fiscal deficit is testimony to this, as is the almost apologetic way the Rudd government in Australia has mentioned the ‘d’ word in recent days.

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