Charles Murray writes one of his classic pieces where he manages to turn controversial and important research into inane talking points. For the record, I think assortative mating and social stratification based on a host of income related personality traits – height, intelligence, beauty, gregariousness, grit* – is a serious issue that no society has had to face in the same way that the US will face it over the next 40 years.
Nonetheless, I don’t think this is what the Tea Party is all about.
Moreover, the real issue with Ivory Tower isolation is this from Paul Krugman
Wow. I guess I lead an intellectually sheltered life. Until I followed a link from Yves Smith, I had been blissfully unaware that the investment airwaves were full of people yelling that Bernanke is debasing the dollar because the dollar has fallen modestly in recent weeks.
Is it really possible that the CNBC-watching crowd doesn’t understand that right now a weak dollar is good for America? Have the usual suspects turned their backs not only on the insights of Keynes, but on basic monetary economics as well? Is goldbuggism triumphant?
Paul . . . Paul. [shakes fellow academic gently]
These shouts are coming from the 99th maybe 98th percentile in terms financial literacy. Most of the CNBC watching crowd doesn’t even fully understand their argument.
Yes, Peter Schiff is talking over the heads of most business minded people in America. Just let that sink in.
*That was just for you Matt