Does economics have a moral dimension? Or, in other words, do our views on the economy reflect our moral values. Professor Haidt of NYU's Stern School of Business thinks yes. He has written an interesting paper on the topic - but you can also watch his talk about it below.
In a recent blogpost on Project Syndicate Jeffrey Sachs is criticizing Nobel-laureate Paul Krugman for his recent praise of current U.S. economic policy and his continued lamenting about British austerity policies. According to Sachs, the recovery of both countries follows a similar trajectory, so one cannot defend one and criticize the other without putting one's intellectual honesty in doubt. What makes this debate interesting is the fact that Sachs is not known to be a defender of austerity measure (see one of his recent books) and is on the same page as Krugman on many issues. The posts of both economists are worthwhile reading, for they emphasize that the complexity of economic policies during economic crisis goes beyond the simple austerity vs. spending divide. Additionally, it shows that even the best economists can engage in confirmation bias and see the reality align with their political beliefs.