On Balls and Economists

While some of our staff count them among their closest friends, our conviction that the great majority of economists represent a lower form of humanity remains strong. Here's an example of why many economists are best viewed within the confines of a zoo. Yesterday's Sunday New York Times has a piece about how the middle class is being squeezed out of major U.S Cities: "The percentage of higher-income neighborhoods in many places has gone up. In New York, the supply of apartments considered affordable to households with incomes like those earned by starting firefighters or police officers plunged by a whopping 205,000 in just three years, between 2002 and 2005."

So what does an economist have to say about this? "Firefighters who want to live in high-priced cities can work two jobs, said W. Michael Cox, chief economist for the Federal Reserve Bank of Dallas. “I think it’s great,” he said. “It gives you portfolio diversification in your income.”

Can you believe this guy? He draws a parallel between the rich guy who diversifies his financial portfolio and the poor sap who needs to work two or more jobs - and thus never sees his family, barely sleeps, wonders whether he'll make the rent - but in the process gains "portofolio diversification of income."

Mr. Cox, you have muchos huevos grandes, and belong in a cage with other animals of your ball size.