Economists' Political Advocacy: Why Americans Dismiss the Dismal Science

A group of Nobel Prize-winning economists recently signed an open letter arguing that President Biden's economic agenda is vastly superior to President Trump's. However, the field of economics purports to be a science, priding itself on intellectual rigor and evidence-based assessments. Yet the political advocacy of academic economists is a potent reminder of why Americans have come to dismiss the dismal science.

The recent open letter by Nobel Prize-winning economists supporting President Biden's economic agenda is a glaring example of the politicization of economic "science." While economics claims to be a discipline based on empirical evidence and logical reasoning, the behavior of many academic economists has cast doubt on its objectivity.

The contrast between President Trump and President Biden's economic records is stark. Under President Trump, tax reform and deregulation spurred economic growth, with real wage increases for all income levels. In contrast, President Biden's policies have resulted in persistent inflation, eroding Americans' purchasing power and living standards.

Economists' Political Advocacy: Why Americans Dismiss the Dismal Science

Despite the clear evidence, 13 Nobel laureates who signed the letter in support of Biden's economic agenda also endorsed the American Rescue Plan in 2021, which significantly contributed to the current inflationary surge. Moreover, the lead signatory, George Akerlof, is married to Treasury Secretary Janet Yellen, highlighting the potential for political influence on economic analysis.

The politicization of economic science is not new. In 2020, hundreds of economists, including Nobel laureates, argued that Biden's policies would be better for the economy. Similarly, in 2016, a group of economists warned that a Trump administration would pose a "unique danger" to the economy.

Economists' Political Advocacy: Why Americans Dismiss the Dismal Science

However, the reality contradicted these predictions. Aggregate real household net worth increased significantly under President Trump, while it has stagnated under President Biden. These facts demonstrate that political ideology, not objective analysis, guides much of the economics profession.

The politicization of economics undermines its credibility. Economists have a responsibility to provide impartial advice based on evidence, not partisan biases. When they fail to meet this expectation, they erode public trust and damage the reputation of their profession.

Economists' Political Advocacy: Why Americans Dismiss the Dismal Science

As Harry Truman famously said, he wanted a "one-handed economist" because all the economists he knew seemed to want to have it both ways. Today's economists seem to have the opposite problem: their certainty vastly exceeds their knowledge or predictive power.

Given their recent track record of partisan gamesmanship, it is unsurprising that Americans have come to dismiss the pronouncements of economists. Instead, they rely on their own lived experiences and the clear evidence of economic indicators to judge the performance of the economy and the effectiveness of economic policies.

The politicization of economic science is a dangerous trend that must be reversed. Economists must recommit to objectivity, evidence-based analysis, and rigorous scrutiny of their own assumptions. Until they do, the dismal science will continue to be dismissed as a tool for partisan advocacy rather than a source of reliable economic guidance.