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Once in a while, the study of economics creates a new branch of inquiry that leads to startling new insights -- for example, behavioral economics. It combines psychology and economics to investigate what happens in markets when some of the actors display human complications -- like making irrational choices.

There's another new branch of the dismal science now gaining popularity, but its future seems far less promising. It's called Halloween Economics and the point of it is to scare people into doing nothing about global climate change. (Talk about an irrational choice!)

The current prime example of this phenomenon is exemplified by a report called Analysis of The Lieberman-Warner Climate Security Act (S. 2191) released by the American Council on Capital Formation (ACCF) and the National Association of Manufacturers (NAM). It delivers a big loud BOO! by predicting that the Climate Security Act -- now pending before Congress -- would lead to economic nightmare.

Examine the evidence supporting the report's conclusions, however, and the masquerade is exposed, leaving behind just a nasty trick played woefully out of season. Unfortunately, -- unlike children -- Halloween Economists do not limit themselves to a single night of ghoulish, make-believe indulgence. They have just kicked off a national tour.