October 19, 2009

Truman and the Economists


I just want to share a little anecdote here. Late President Harry S. Truman (1884-1972) is not only considered one of the greatest U.S. presidents, but he is also one of the most well-celebrated natives of Missouri. The Univeristy of Missouri mascot is even named after him--Truman the Tiger. Us economists, on the other hand, are famous for making different assumptions before arriving at a conclusion. Economists are famous for popularizing the terms "ceteris paribus," and it's no surprise that the different schools of thought that plague economics since Adam Smith arise because each school is based on differing assumptions.

So what does President Truman and economists have in common? Well, none actually. In fact, President Truman's not too excited about economists, as the following quotation that he immortalized shows:

"Give me a one-handed economist! All my economists say, 'on the one hand...on the other'."


Well, what can economists say? For economists, economic outcomes is predictable only if you make certain assumptions. But of course, you can't help but emphatize with him. Can't wait for that day when there's only one school of economics and that we don't need to give different outcomes based on different assumptions in answering every economic questions.