Some words (even if they are made up) you just know what they mean when you hear them. Econobabble is one of those words which needs no definition.
We know what it means because we have heard Econobabble for years every time someone tries to push their own political point or their own vested interest. It encompasses the supposed statements of fact that just sound like bullshit but we can't prove it, and we don't know how to fight it. Until now.
I have been reading an excellent book with that exact title... by the economist Richard Denniss. While I'd recommend you read it for yourself, I thought I'd share a few of the more engaging passages to give you a taste for Richard's writing and the message of the book.
One of the staples of Econobabble is to refer to the Markets as if they have feelings, and to ascribe to them some kind of higher and ultimate wisdom. Richard illustrates how opaque economic language is used to conceal the truth with some excellent examples. The following two passages say the same thing:
Markets reacted angrily today to news the government is considering tightening thin capitalisation provisions, which have provided foreign investors with strong incentives to expand their Australian operations.
Rich foreigners reacted angrily today at news that they might have to pay tax on the profits they earn in Australia. After the government announced that it was considering clamping down on some of the most lucrative forms of multinational profit-shifting, some very wealthy Americans threatened to take their businesses away from Australia if they were forced to pay tax.
The first statement suggests a proposed policy is not in our best interests, while the second demonstrates it clearly is. Econobabble sells us up the river to the rich mates of some politicians and lobbyists.
Richard also provides some excellent advice on how to wade through it to find something more closely resembling the truth:
It's a great book, essentially reading with a Federal election just around the corner... when we will be inundated with Econobabble.
by Mark Enders
The Townsville Greens will publish blogs considered to be of merit. The opinions expressed are those of the Author.