on Kaletsky

A recent article by Anatole Kaletsky in the The Times criticized Austrian economists (here). My brief rejoinder is up at the IEA blog.

His second criticism of the Austrian school is that the general public would not support it. But the popularity or feasibility of a policy does not determine the scientific merit. It is quite possible to introduce measures that are unpopular but increase long-term prosperity - especially when the public are fed such slanted views on what those policies are. Yes, readers may prefer immediate job preservation than future job creation. It is the role of the economist to point out the hidden costs associated with such short-termism.