Hypothesis testing

The economists I respect are the ones who treat economics like a science.

In science, you're allowed to dream up any notion (or "hypothesis") you like. But then you're expected to test your notion against reality.

You test a hypothesis by asking what effects we would see if the hypothesis were in fact true. For example, if we suppose gravity behaves in a certain way, we would expect objects that are moving under its influence to move in certain ways. If they move some other way instead, our hypothesis about gravity is in trouble.

Walter Williams puts a couple of economic hypotheses to the test. These are: "43 million Americans without health insurace aren't getting vital health care", and "All our jobs are being "outsourced" to other countries."

Well, if 43 million people were being denied health care because they lack insurance, there'd be any number of hard-luck stories for the news media to broadcast. Where are they? Apparently, those 43 million people are getting treated for their health problems. Maybe not as quickly as they'd like, but they are getting treated.

"Outsourcing" turns out to be more than balanced by "insourcing", or jobs being exported from other countries into the US. There are some things foreigners can do better and cheaper than we can. (Though some people have had nasty surprises overseas, and had to bring their jobs back to the US. Cheaper isn't better if it's not suitable for your intended use.) There are a lot of things we do better than foreigners.

If you're going to vote, it's your responsibility to avoid voting when you're in the throes of panic. You don't make good decisions when you panic.