Macroeconomics does not work for a multitude of reasons. First and foremost is that it does not pick up the "changes" at the microeconomic level. That is, it does not deal with changes in incentives and disincentives that individual decision-makers like business owners, consumers and investors use to fashion their behavior. An excellent example is the British Petroleum fiasco. No macroeconomic model is capable of discerning the sentiments expressed in this short blurb from Steve McCann that appeared at American Thinker:  The Obama administration has just made certain that there will be minimal foreign or even domestic investment in the United States.   Their shakedown and blackmail of BP has major corporate investors looking elsewhere for expansion and exploration.   No company answerable to their shareholders or investors will risk capital in a country which has brutally abandoned the rule of law. My company is...(Read Full Post)