Debunking Economics

The title of this video is taken from a book of the same name by Steve Keen. The author manages to present the philosophy underlying economics, including its iconic assumptions or core beliefs. Keen also steps into the sociology of professional economists. This video is limited to a review of a small portion of chapter 7 dealing with the key core building block of economics - equilibrium. This is the iconic notion that capitalist free markets always produce a productive meritocracy. However, history reveals capitalism offers chaotic business cycles, depressions, great inequality and meritocracy restricted to the Power Elite alone.

Category:

News & Politics

Tags:

• debunking
• economics
• steve
• keen
• equilibrium
• business
• cycles
• capitalism
• free
• markets
• milton
• friedman
• John
• maynard
• keynes
• neo
• classical

[zsylvana]

2)Other early contributions to critize the equilibrium were made by T. Veblen, Gunnar Myrdal,Karl William Kapp and N.Kaldor.The deepest work on the subject was perhaps Gunnar Myrdal's theoretical key concept "circular cumulative causation" that contributed to the development of modern Non-equilibrium economics.This approach is represented by modern researchers in the fields of evolutionary-institutional economics,Post Keynesian economics,Ecological Economics,development and growth economics

[radiohogan]

@zsylvana

Dear Z:

You continue to be the best. Your very many contributions to OUR salon, is appreciated beyond measure. Sweden has been fertile soil for you. You understand the history of ideas as few do.

All the best / Mike

[dfairchildks]

Keynes didn't say equilibrium is bullsh_t. He said there could occur periods of below full employment equilibrium. And during such periods the unemployed have no mechanism (money) to signal their potential demand, so government must use deficits to increase aggregate demand until full employment equilibrium is reestablished. So are you not a Keynesian? Is Keynes bullsh_t, too, in your view? Thanks.

t

[radiohogan]

@dfairchildks

The man who wrote "Debunking Economics" wroyr eqilibrium is BS (My paraphrase). Keynes would have been a big believer in equilibrium as a reality.

[dfairchildks]

RadioHogan,

I recently found your YouTube Channel and have been enjoying a sampling of your videos.

However, I am not sure what you are claiming here about equilibrium theory.

Are you saying while unfettered supply and demand may yield an optimal equilibrium under ideal circumstances, too often optimal equilibrium is not realized due to less than ideal circumstances? Or are you saying there is something wrong with equilibrium theory at its core?

Thank you,

Dave in Kansas

[radiohogan]

@dfairchildks

I am saying equilibrium, as an economic idea, is bullsh_t.

[zsylvana]

5.)Hayeks attack upon those who refer to totalitarian serfdom as a new freedom is fully justified.But when he speaked on behalf of the old freedom of liberal capitalism,he only matches mere words with mere words.He should known,and probably did know,that his proposals in both national and international fields,for arresting the capitalist tendency toward totalitarianism cannot be realized,and, even if they could be realized,would bring forth only once more what they intended to destroy.

[zsylvana]

4.)Because of the process of accumulation, Hayeks competition has become monopolistic competition, and monopolistic competition has led to competition between totalitarian states. In the totalitarian state all layers are engaged in it to the point of death. Thus capital has finally triumphed over all of humanity. The ideal capitalism is always the present one, and whether Hayek likes it or not, the principle of capitalist competition is fully realized only in total war.

[LuqmanNaq]

My God. It just came to me that the idea of equilibrium in economics has infected the mainstream culture. I personally beleive we are heading for an economic collapse (based on steve keen's analysis and others) or at least a severe depression. Alot of the public think that this is simply a 'down' in the economy and that it's natural, not realizing that this is the apex of a series of debt bubbles.

[zsylvana]

Myrdal's early work on money was theoretical in nature. As a leading contributor to the Stockholm school, he followed Knut Wicksell's (1851-1926) cumulative process analysis, in which cumulative inflation occurs when banks hold the loan rate of interest below the natural rate of interest (at which saving out of full-employment income is equal to investment), resulting in a high level of investment demand.

[zsylvana]

Myrdal's as a leading contributor to the Stockholm school, he followed Knut Wicksell's (1851-1926) cumulative process analysis, in which cumulative inflation occurs when banks hold the loan rate of interest below the natural rate of interest (at which saving out of full-employment income is equal to investment), resulting in a high level of investment demand. In a 1931 work (published in English in 1939 as Monetary Equilibrium ),

[zsylvana]

3)Gunnar Myrdal, Swedish economist and 1973 Nobel Prize winner for his early work on monetary theory, made major contributions to macroeconomic theory, international economics, development economics, economic methodology, and social and economic policy. He was a critic of mainstream neoclassical economics His early work on money was theoretical in nature. As a leading contributor to the Stockholm school, he followed Knut Wicksell's (1851-1926) cumulative process analysis,

[Ranger4564]

@Ranger4564 * The mistake Capitalists make...

A clarification: Sitting on a piece of land does not make it yours... you are using that land, but it belongs to all of humanity, past present and future. Private possession of articles may be arguable, but private possession of land is unjustifiable if the aim is to achieve equality. Yea right. Equality my @ss. So it's disingenuous to be arguing about privatization of property precisely because it was private property that allowed Feudalism.