How Experts Can Fail Even When They Are Right

Source: American Institute for Economic Research
by Art Carden

“I trust experts. I listen to my doctor, mechanic, hairstylist, and financial advisor. I rely on my doctor to advise me about the effects and side effects of different medications. I trust my mechanic to inform me about how replacing my tires would affect traction. … I trust my financial advisor to inform me about the combinations of risk and return that different mutual funds offer. I trust them to advise me. However, I do not trust them to choose for me. Even if they wish me nothing but the best and are exactly right within their areas of expertise, they do not have my knowledge of ‘the particular circumstances of time and place.’ I think this is true even when there are spillovers, as with contagious diseases like Covid-19.” (09/14/21)