Economists Obsess Over Means, Misunderstand Ends

When you hear of this millionaire or that billionaire, you might think of what you would like to do with just a fraction of that wealth.  Notice that your dreaming doesn’t end with, “I wish I had that much money;” that’s how it begins.  The dreaming ends, if ever, after deciding what you might do with that wealth.  It’s not the money you crave; it’s the opportunities that the money can provide.  John Tamny regularly points out that “we want money because of what it can be exchanged for.”  Sounds simple enough, but Tamny states it often because it’s unnecessarily complex to most, which is why “the failure of economists and journalists to internalize this statement of the obvious is the source of all manner of economic misunderstanding.”  Stated differently: because economists and journalists obsess over the means, the ends are misunderstood.  And if the ends aren’t commonly understood, obsessing over means will ensure that the ends are hardly ever achieved. Read Full Article »