John Cochrane is an economist at the University of Chicago. The Wall Street Journal has just featured his op ed piece entitled “The Failure of Macroeconomics.”
I’ll focus on his foray into criminology as a component of economic growth. Cochrane’s column ignores the paramount role that the three epidemics of “accounting control fraud” played in hyper-inflating the bubble and causing the financial crisis – which cost over 10 million American jobs and a projected $21 trillion loss of production. Instead, he claims that the economic recovery is weak because “Who wants to hire, lend or invest when the next stroke of the presidential pen or Justice Department witch hunt can undo all the hard work?”
