There are at least three forms of economics at play; Fundamental (philosophic), Applied, and Political, each having differing characteristics as well as fields of play. These are not well distinguished in what is taught in the schools, your posts do great justice to educating others about these properties, well done.

What concerns me is the almost certainty that instead of a FDR to address economic needs, there will be instead a politician demagogue, an Elmer Gantry type, appealing to the public emotions through pseudo-economic mumbo-jumbo, that will lead to the final chapter of the republic. The public will be defenseless through failure of education to resist the siren appeal, an will follow as lemmings over an economic precipice, not knowing what or where they are headed. There are commentors here now that are issuing polemic that I expect from the demagogue, full of anger, of hate, and of unreasoned rage – all emotive based, no indication of rational or followed through thought. And from where I am at, that truly disturbs my ease for the future of the country (and for the rest of the world), long term, a new dark age may be the result and that would be a brighter outcome. All the best……

I will grant you that the Bush administration’s anti-science policies have not aided R & D development. On the other hand our academic institutions are still able to attract the “best and the brightest” in the world through their wealth. They just pay more than the publicly funded institutions in Europe. (I am not qualified to talk about Asia – it might be different there). Our academic institutions are not solely dependent on government aid or government policy. Government policy is part of the equation, but not the entire equation.

Our government policies should encourage that all of this research stays at home and doesn’t get auctioned off to the highest bidder, wherever they might be – that has been one of the many unfortunate effects of both the Bush AND the Clinton years. If you have read the Shock Doctrine, you will understand what I am talking about.

The placebo effect doesn’t work for me anymore, but there are plenty who are getting their fix, so fine.

As Ian and others are pointing out, major externalities, systemic imbalances are coming down to destabilize the status quo – Climate Change, Peak Oil, and the collapse of the whole wall street ponzi schemes – the scale of the uncertainties coming out of this totally dwarfs campaign rhetoric, the next Prez will probably get blamed for it all, totally unfairly, of course.

good news – the end of the stupid Suburban, exurban buildout, and the return to high density urban centers!

Be glad to have you up here. We’ll make you into a canuck in no time.

*hmmmm, real street poutine, eh, and thank you*