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15 Nov 2013

UK Money is distributed from the Government? Now wait up.

A few weeks ago I had a lunch with a some fellow students of mine. A discussion of socialised health services came up, among a large variety of topics. Especially the idea that everyone should be entitled to health care according to needs, but financed through taxation. Typical socialist idea, abominable to most people in say shoe-making industry or food production - but for some reason health care seems to hold a particular position in the minds of people who wouldn't call themselves socialists.

BUT, that's beside the point. A friend of mine made a glamorous remark; that money is distributed from the government through the minimum wage. Wait, wait, wait. How did you even come up with that? How would such a thing even be possible? Right. The fascinating stuff is that after publicly displaying such ignorance of economic events, she effortlessly continued on criticising some economic policies being carried out by the UK government.

I am not blaming her for lack of knowledge in a particular field - how could anyone? That's natural. After all, our interests differ, we pursue different things. What I do blame her for, though, is making judgements on events in that particular field. Economics is a specific subject, and knowledge in its field is in no way compulsary. But putting forth economic policies, how they ought to change or what is to be done, with no prior knowledge of such is something completely different.

I mean, if I visit my GP because of a foot injury, she runs some tests and conclude that I have a bone fraction, I am in no position to convince her that the real issue actually is an infectious stomache disease. Or if I turn in my car to a mechanic, am I to instruct him how to swap tires? Tell oil-rig workers how to drill for oil? Bottom Line: know thy limitations.

But for some reason, economics or economic policy is open for any laymen to criticise. Well, ok, there will be gray areas and at some point I suspect this will be held against me or economists, when we establish claims on society or other sectors, altough I'd argue that be a bit different. The event is fascinating; why is Economics an acceptable target for events of this sort, while medicine or engineering is likely not to be?

I believe Murray Rothbard said something clashy on the topic, but can't find the quote. Anyone?

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