It’s cute that you think Europe will mutualize its debt next month, it really is. You probably also think Palestine will have its own territory by December, Iran will ally with the United States to bring peace in Syria, and that J.K. Rowling is secretly writing another Harry Potter book. Face it Dick, none of that is going to happen.
I standby my statement on scale, but I also agree that economics is a social science. not a natural science. The biggest difference between the two, in my mind, is the lack of predictability in social sciences. (Scientific formulas are wonderful because, regardless of scale, the outcome is always predictable. I will put money on your search to find otherwise). Take, for instance, my latest series on Austerity or Stimulus and which works better in a financial crisis. There is very strong evidence for both theories being the “right” method in fixing a broken economy, and there are both success and failure instances in execution in just the last 5 years. The fact that there are both real-life failure and success examples with each method proves that there are a lot of hole’s in current economic models. So I will not only go as far as to say that economics is an unpredictable bitch, but that even after a model has been chosen for execution, it is nearly impossible to prove its success/failure over the opposing model.
You say “now more than ever our Economic system is interconnected with our financial system” and the fact that you are correct in saying so should scare the shit out of you. Bankers are not civil servants, yet their actions have just as big an impact on our society as any other paid government official. That’s a huge problem in my mind. And I’m not saying the competency of a banker versus the competency of a government official is worse, in fact it’s probably not in a lot of cases. But the underlying goal of each profession is vastly different.
You also mention the Fed’s function of lowering the unemployment rate, and I know that this is a typical function of a central bank, however I fail to see how it can realistically accomplish this in a capitalistic economy. Perhaps you can enlighten me on how the Fed will create jobs for its citizens that are unemployed? It’s funny because the Fed blames Congress for not doing enough to lower unemployment and A LOT of pundits are blaming the Fed for not doing enough. I can’t see how the government could possibly be responsible for creating jobs, that’s the free markets role. I would simply say it’s the government’s responsibility to take care of people who are unemployed.