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What economic theories should you believe?


You should take economic truisms with a pinch of salt, says Free Lunch Think author Tom Bergin.
by Stephen Jones
Steven Mnuchin’s decision to give teenage climate activist Greta Thunberg career advice was not well received. If she really wanted to lecture global governments, the then US treasury secretary remarked during a press conference at Davos last year, Thunberg should come back after she had studied economics.
It highlighted two things. One is the reluctance of many elected governments to accept the urgency of the global climate crisis; the second, Tom Bergin says, is that policymakers tend to view economics as the pre-eminent solution to the world’s challenges. The problem, he argues in his book Free Lunch Thinking, is that the answers economists give are very often completely wrong. ....

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