Are economists and financial experts deliberately creating a “hoax” when talking about the modern financial world? This question might seem absurd, but with the growing complexity of the global economy and the interconnected nature of global finance, it’s understandable to be curious. In part two of our analysis of “The Hoax of Modern Finance”, we examine the scientific language and industry jargon used by experts in the field.
For starters, the “economic indicators” given out by central banks and governments across the world are often the source of confusion. Terms like “Gross Domestic Product” (GDP) are usually tossed around carelessly by economists, but they refer to a surprisingly simple concept—the total value of goods and services produced in a given country. Despite the technical language used to describe it, the idea of GDP is straightforward enough; it’s a measure of economic activity.
Unfortunately, GDP isn’t the only indicator used to measure financial performance; there are a number of other financial terms that experts have come to rely on. For example, the performance of individual stock markets can be tracked using the “Dow Jones Industrial Average” and the “S&P 500” indices. That said, these terms don’t tell us much about the individual firms represented by each index—instead, they simply describe the “average” performance of a large number of well-established companies.
It’s these few terms, along with other complicated industry jargon, that can be used to confuse and manipulate the average person. Of course, it’s easy to argue that financial language is necessary to discuss difficult concepts, but it can easily be misused. This, in turn, can create a “noise” that obscures the underlying information that economists, bankers, and investors are trying to communicate.
In essence, “The Hoax of Modern Finance” is a reminder to be skeptical of the language used by the financial establishment. It’s also a warning to be aware of the real meaning behind the jargon used by experts in the field, and to make sure that they’re not masking a hidden agenda. At the very least, we should all strive to become more informed about what’s really behind the curtain when it comes to modern finance and economics.
