“Economics is the supreme scientific discipline of modern government. As a consequence, it is also the most corrupted of all scientific disciplines. Paid work for economists exists wherever there is an effort to plan and control. Once upon a time it was the Soviet Union that employed the largest number of economists. Today, it is the central banks, and the US Federal Reserve System (Fed) first and foremost among them; currently between 200 and 300 graduate macro-economists work for the board of governors of the Fed, not including numerous posts for assistants. Every year, the board of governors distributes hundreds of millions of dollar in subsidies to economists, so an estimated 500 economists are working full-time for the Fed’s ‘agenda’ in addition externally. A press report on the topic includes:
‘One critical way the Fed exerts control on academic economists is through its relationships with the fields’ gatekeepers. For instance, at the Journal of Monetary Economics, a must-publish venue for rising economists, more than half of the editorial board members are currently on the Fed payroll—and the rest have been in the past. [In short, the entire profession of economists ha been bought off by the Fed.]’
The Austrian School of Economics is largely free of the prostitution for influence and income that is so typical for modern day economists.…
Today, the Austrian School is often accused of being dogmatic and ideological. And to an extent this accusation is perhaps not entirely unjustified, but it is only partially deplorable … dogma can protect against errors, and ideology against wrongful usurpation. In a world characterized by exaggerated short-termism that slavishly follows day-to-day events, engagements with the Austrian School is akin to time travel: it brings a perspective into our world that has become alien to us, and which offers fantastical possibilities for insight.
Austrian School for Investors—Austrian Investing between Inflation and Deflation, p. 19, Rahim Taghizadegan, Ronald Stoferle, Mark Valek, Heinz Blasnik
“Useful knowledge is nowadays often of the type that provides one with influence and ability to have an impact: powerful friends, well-heeled clients, and a multitude of imitators. This form of ‘practice’ is however, corrupting. Corruption means ‘breaking’. We either break ourselves because of it, as no amount of money in the world can outweigh the emptiness that a bad conscience, envy and hate bring about…. If we are not breaking ourselves due to our corruption, then society will ultimately break apart because of it.”
“Knowledge that is mainly concerned with ‘usefulness’ is therefore often tainted…. The corruption of mainstream economics … is partially explained by … Friedrich A. Hayek [who describes this corruption] as follows: ‘Not only are there no glittering prizes, no Nobel prizes, and—I should have said till recently—no fortunes and no peerages [Hayek alludes to Keynes, here], for the economist. But even to look for them, to aim at praise or public recognition, is almost certain to spoil your intellectual honesty in this field. […] The reason why I think that too deliberate striving for usefulness is so likely to corrupt the intellectual integrity of the economist, is that immediate usefulness depends almost entirely on influence, and influence is gained most easily by concessions to popular prejudice and adherence to existing political groups. […] [An economist] above everything must have the courage to be unpopular.’”
Austrian School for Investors—Austrian Investing between Inflation and Deflation, pages 68-69.