Political Ideologies And Economics

I’ve found it interesting that economic analysis is being categorized as coming from different political sources.  For instance, it is often said that Ben Bernanke was appointed by a Republican, Paul Krugman is a “liberal economist,” etc.

This type of classification was also seen in President Obama’s speech on Wednesday, when he said “…an idea which has the support of Democratic and Republican experts.”

The examples are many.  What I find disconcerting about them is that they seem to imply that there are multiple sets of economic realities, determined by the differing political ideologies.  In a way, kind of like different “flavors” among which one can choose.

It is important to realize that there is only one correct economic interpretation of a given situation. 

SPX at 1046.86 as this post is written