Why is it that people keep publishing articles about the economic philosophy that underpins Barack Obama’s policy proposals without publishing similar articles about the other Presidential candidates? This time, Noam Scheiber writes about Obama’s economics. I find the pragmatism of a behavioral economics-based approach very appealing.
There’s a ton of good stuff in the article, but I’ll highlight a few paragraphs:
And, yet, it’s not just the details of Obama’s policies that suggest a behavioral approach. In some respects, the sensibility behind the behaviorist critique of economics is one shared by all the Obama wonks, whether they’re domestic policy nerds or grizzled foreign policy hands. Despite Obama’s reputation for grandiose rhetoric and utopian hope-mongering, the Obamanauts aren’t radicals–far from it. They’re pragmatists–people who, when an existing paradigm clashes with reality, opt to tweak that paradigm rather than replace it wholesale. As Thaler puts it, “Physics with friction is not as beautiful. But you need it to get rockets off the ground.” It might as well be the motto for Obama’s entire policy shop.
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