“(Concerning the Federal Reserve Bank bailing out commercial banks) I find the lack of outrage among academic economists and policy oriented economists kind of strange“. – Russ Roberts, a little after the 25 minute mark
Dean Baker of the Center of Economic Policy and Research talks about the financial crisis with Russ Roberts. Roberts is a professor at George Mason University.
I love this quote. I believe it is true. Shortly after the market dropped in 2008, I got a call from one of my favorite professors at East Carolina University. In hindsight, I went after him concerning the lack of public responses to policies the government was passing to bail out failing industries.
I kept thinking that we have an army of trained economists that know better. They know the policies considered cannot work and will fail. And they didn’t stand up and say this publicly. I read their books. I know the arguments. The only thing I felt I didn’t have was the credibility of their position.
My argument was rather heated with this professor. Fair or not, I was upset and I am still upset about what happened. Sadly, my conversation with him was part of my frustration.
Listen to the podcast here http://www.econtalk.org/archives/2012/01/dean_baker_on_t.html