Your humble narrator was on “The G. Gordon Liddy Show” today talking about liberal philanthropist George Soros’s odd economic theory called “reflexivity.” You can listen to the show here, but bear in mind my segment only begins at roughly the 46-minute mark. The talk was prompted by an article called “Soros sees ‘reflexivity’ theory of economics as life’s work,” that ran in the May 12 USA Today. An excerpt from the article:
WASHINGTON – For most people, being known as a fabulously wealthy investor, prominent global philanthropist and outspoken critic of the current occupant of the White House would constitute sufficient acclaim.
But George Soros, now in his eighth decade and enjoying a personal fortune estimated at $9 billion, yearns to be seen as something other than a financial oracle or Democratic Party sugar daddy. The Hungarian émigré, who built a worldwide reputation by out-thinking markets, desperately wants to be acknowledged as a philosopher.
His bid for such recognition – in a new book published last week – lies in a theory called “reflexivity,” which Soros argues should supplant conventional economic thought that’s based on coolly calculating rational actors. Soros, 77, who first read philosophy as a teenager during World War II, has promoted the concept for more than 20 years with little success.
But hailing reflexivity as his “life’s work,” Soros now says the current financial crisis offers an opportunity for him to garner wider acceptance. “I’m actually hopeful this time I’ll break through,” he says.
It’ll be an uphill fight. Critics of reflexivity, especially among the economists Soros disparages, have been brutal. A reviewer of one of his earlier books savaged his “windy amateur philosophy” and attacked him for being unfamiliar with basic economics……
Prediction: the fight will continue to be uphill.