Italians ignore the experts
28/02/2013 Comments Off on Italians ignore the experts
By now, it is old news that Italians expressed their collective displeasure with economic experts telling them how to run their country. Monti, you will recall, was appointed Prime Minister in a true ‘call in the experts’ move. Now, his party has made a poor showing in the election, and no wonder:
Battered by 13 months of the technocrat government’s austerity measures, many voters had grown to loathe Monti for – as they saw it – turning the screw on them with tax hikes when they were already struggling in a recession.
The adjective commonly applied to Mario Monti was ‘technocratic’. It’s such a bloodless word. For it to have any meaning, one must make massive assumptions about the objectivity of knowledge and the possibilities for even-handedness. It’s an entire worldview hiding in a single word.
Economies are, of course, for the benefit of people. If people decide that things aren’t working out for them, they have options. Sometimes, it means changing jobs, or cutting back on spending, or moving cities. Those are all individual actions made within the bounds of existing conditions. Sometimes, though, people decide that the conditions need to change. That’s what the Italian election signals, as Krugman explains:
The fundamental fact is that a policy of austerity for all — incredibly harsh austerity in debtor nations, but some austerity in the European core too, and not a hint of expansionary policy anywhere — is a complete failure. None of the nations under Brussels/Berlin-imposed austerity has shown even a hint of economic recovery; unemployment is at society-destroying levels.
In a crass way, this is clearly a consultancy failure: the expert didn’t understand the client. He pushed the client too hard on challenging issues and didn’t understand the complexities of the environment in which he was operating. It’s no wonder his contract was terminated.
I’m sure he will be appointed to some other job, though. Unlike many of his compatriots.