Professor Donald Boudreaux has an excellent piece over at Cafe Hayek, where he rebuts a common argument he’s been hearing lately in support of Donald Trump:
Trump has proven time and again he knows his stuff when it comes to economics. He has a personal wealth of $10Billion proving his understanding. Hard to argue with results.“]
Though it’s debatable whether those results are truly the result of Donald Trump’s business acumen, Professor Boudreaux points out that the claim doesn’t make sense either way.
He uses the allegory of NASCAR:
To assume that the two domains of knowledge and expertise are the same is an error equivalent to assuming that a successful NASCAR driver is thereby an expert automotive engineer. Of course, it’s possible for a successful NASCAR driver to know something about automotive engineering, just as it’s possible for a successful business person to know something about economics. But success at each of the former tasks (driving a race car and managing a business) is not the same thing as, and requires very little familiarity with, the latter domains of knowledge (automotive engineering and economics).“]
While business success is admirable, knowing of how to run a business isn’t the same as knowing how to run an economy, and successful entrepreneurs should not be confused with economists.
If you want to brush up on your own economic knowledge, read more from Cafe Hayek, or check out the video below.