#neoclassicaleconomics — Public Fediverse posts

I normally like reading #BernardKeanes who writes for #CrickeyNews because he has political nous and knows how to get under the political class’ skin. In this article he clearly has his hand firmly on the political tiller but I cannot say the same for his views on economic matters.

I’m afraid, whatever Keanes has written in the past about the insanities of #NeoLiberalism and the #TrickleDownEconomics it espouses, he couldn’t be further from the light when he advocates a return to positive #Budget balances by reducing Govt spending. If the last 40 years of #NeoClassicalEconomics has shown us anything it is the #Austerity policies simply exacerbate the ill-effects of the deregulated financial markets and offer no solution to working class woes or society as a whole; unless it is **More of the same** which we all know does not work. It is also clear that Keanes errs in thinking that managing a govt budget is akin to running a household budget - he hasn’t made that up, it’s what all economic dullards think it is. He really needs to lift his game on economics because he would have lots more to say then. In the meantime, he should leave commenting on the economy to experts like #GregJericho and his merry band.

https://www.crikey.com.au/2026/09/15/anthony-albanese-donald-trump-us-bonds-debt/

Institution create the behaviour they claim merely to measure – Economics → institutions → behaviour → the #deathcult

https://hamishcampbell.com/institution-create-the-behaviour-they-claim-merely-to-measure-economics-%e2%86%92-institutions-%e2%86%92-behaviour-%e2%86%92-the-deathcult/

@drrimmer
#Fleecing #Raping #Nepo #Grifters were ever so callous in their business dealings. Left *unchecked* they would bring down democratic govts… oh,oh… look… it’s happening in the $US already.

#Warnings #Antifa #UnfettedCapitalism #UnregulatedFinancialMarkets #NeoLiberalism #NeoClassicalEconomics #TaxTheRich #BanPoliticalDonations #AusPol #NationalizeCriticalInfrastructure #SocialDemocracy #MMT #RegulateMarkets #NoMoreBillionaires #BanLobbyism (there should be no privileged access to political leaders or govt officials)

"To summarize: in both Marxist and neoclassical worlds, an economy composed of highly automated sector only is incompatible with the maintenance of capitalism. In one case because the produced surplus value and thus profit is zero; in the other case, because insufficient aggregate demand leads to profits of zero. The situation can be “saved” only by an equivalent rise of a labor-intensive sector or by massive redistribution to people who do not work.

Thus, we see less dismal future for labor that some people argue. Activities where labor cannot be substituted by the AI will blossom. Will AI bring an overall deskilling of labor or not? At first sight, it seems that the AI will lead to deskilling of labor simply because many skills (such as computing, software development, writing, even math) will be redundant as they may be taken over by machines. Yet, this process may be, and is likely to be, counterbalanced by the creation of occupations where labor skills will exceed today’s level simply because they would have to be superior to the skill levels produced by the AI in order for people to want to purchase such products and services. Therefore, while one part of the labor force may suffer from deskilling, or to call it frankly, from the dumbing-down, another part of the labor force will get more sophisticated and much more skilled. To stay ahead it will have to compete with machines more than with the other humans. But so long as we believe in human adaptation, we can think that there would be always a segment of such labor that would do things that the machines cannot do, or even where the same output is produced by both, it will more appreciated (and hence more valued) if done by live labor rather than by the AI. An AI-generated equally beautiful ice-skater is unlikely to be as much appreciated as a human ice-skater. At least, by the humans."

https://branko2f7.substack.com/p/artificial-intelligence-and-future

#AI #Economics #PoliticalEconomy #GenerativeAI #Marx #Marxism #NeoclassicalEconomics

With regard to intellectual diversity on campus, departments of economics tend not to be shining examples .

#HigherEducation #USUniversities #Economics #NeoclassicalEconomics #IntellectualDiversity

#NeoclassicalEconomics has become a cult. It's demonstrably false dogmas treated as gospel truth;

* corporatising and selling off public infrastructure cuts costs and improves services. False.

* cutting public spending boosts economic growth. False.

* Suppressing wages and benefits boosts employment. False.

* Deregulating markets increases competition, reducing prices. False.

How on earth do we get through to people who still believe this horseshit, despite decades of counter-evidence?

If you’re an MMT‘er, this is one podcast you do not want to miss. I for one am looking forward to the next one.

If you are a neoclassical or neoliberal economist then watching this pod cast is likely to screw with your brain, so be warned even though I huighly recommend you watch it.

#RichardMurphy #economics #NeoclassicalEconomics #NeoliberalEconomics #MOdernMoneyTheory #MMT #Taxation #GovernmentExpenditure #Academia #EconomistsAdrift #FalseEconomicAssumptions #ChicagoSchoolOfEconomics #Reaganism #Thatcherism

Our economic systems are built on false assumptions and we need to change that because there are better ways to greater social good.

https://mas.to/@RichardJMurphy/115178485282189047

Ha-Joon Chang is totally right. Economics is heading towards total irrelevance - mostly because it has severed all ties with political science and the study of power.

"Neoclassical economics has become the Aeroflot of ideas. A friend recalls that after asking for a vegetarian meal on a flight with the Soviet airline in the 1980s, he was told: “No, you cannot. Everybody’s equal on Aeroflot. It’s a socialist airline. There’s no special treatment.” The same logic applies in today’s economics departments: you’re free to choose — as long as it’s neoclassical chicken.

But real life is not one-size-fits-all. The complex challenges of our time require imaginative solutions, not endless variations on the failed theme of efficient markets. We need a more nuanced approach and to understand the economy not from a purely economic point of view, but also from political, social and psychological perspectives. Reforming economics curricula is not an academic distraction — it’s a societal imperative. 

We need to push for an economics education that is more pluralist, ethically aware, historically grounded and relevant to the real world.
(...)
While we can expect further dismissals from the discipline’s high priests, we also know that they are on the defensive. The cracks are showing and the demand for change is growing. Even the staunchest defenders of orthodoxy will eventually have to listen. 

I remain an optimist. Two hundred years ago, buying and selling people was legal in many countries. A hundred years ago, women were jailed for demanding the right to vote. Progress never comes easily. You can’t simply hope that societies will evolve in the right direction. You have to fight to change them."

https://www.ft.com/content/9aabb4a9-d896-4b4c-a40a-1c4477a47a29 

#Economics #SocialSciences #NeoclassicalEconomics #Capitalism #Neoliberalism

It's fascinating to hear Michael Beckley misunderstand China, despite being well-informed on the raw facts. Because he's trying to cram those facts into a one-size-fits-all neoclassical economic frame. It simply doesn't fit a country with a totally different political-economic system from the US, and a massive, diverse territory with a huge population.

https://opentodebate.org/debate/has-chinas-power-peaked/

(1/?)

#podcasts #OpenToDebate #China #NeoClassicalEconomics

#Economy #Economics #NeoclassicalEconomics #IntellectualFraud: "The question we should be asking, then, is whether there is something wrong with mainstream economics. Mainstream economists should perhaps re-examine their core beliefs, or maybe we need a new “mainstream” altogether.

To be sure, Krugman notes that “one strand of argument involved parallels with the inflation of the 1970s.” But this only grazes the problem. The real issue is that most of today’s leading mainstream economists were trained in the 1970s, and their worldview – not just the facts, but the theory – was fixed back then. On macroeconomic issues such as inflation, the influences of general equilibrium theory, inflation-unemployment trade-offs, and monetarism remain strong. The legacies of Kenneth Arrow, Paul Samuelson, Robert Solow, and Milton Friedman live on.

That earlier generation’s project was partly scientific, partly political. As “social scientists,” they believed in the power of mathematics, which they borrowed from the celestial mechanics of previous centuries. Politically, they sought to defend capitalism against the Soviet challenge during the Cold War. By uniting these objectives, they fashioned the market-oriented mathematical straitjacket in which today’s mainstream economists were raised – and from which they cannot escape. Yesterday’s Wunderkinder – including Summers and Krugman – are today’s tired old men."

https://www.project-syndicate.org/commentary/transitory-inflation-why-mainstream-economics-got-it-wrong-by-james-k-galbraith-2023-11

"#MainstreamEconomics has consistently understated the economic damage of #ClimateChange, according to two recent reports. [..]

"The models are relied upon by investors, politicians, central bank governors and influential bodies like the #IntergovernmentalPanelOnClimateChange (#IPCC)."

#MainstreamEconomists accused of playing down #climate threat

https://climatechangenews.com/2023/08/08/economics-climate-threat-models/

#EconomicsOfClimateChange #NeoclassicalEconomics #GlobalWarming #Nordhaus

Mainstream economics is a fake origin story
#neoliberalism #neoclassicaleconomics #ClimateJustice #postgrowth
The bear, the tiger, and the trade unionist by @jks
https://jksteinberger.medium.com/the-bear-the-tiger-and-the-trade-unionist-4b25df5fb3a9

"Steve Keen has been exposing the ways mainstream #NeoclassicalEconomists—including winners of the so-called Nobel Prize in Economics— have been arriving at their absurdly optimistic numbers regarding #ClimateChange, and they’re terrifying. In this interview with Colin Bruce Anthes, Keen goes through prevalent examples in detail .. "

Exposing Apocalyptic Economics with #SteveKeen

#EconomicsOfClimateChange #GlobalWarming #NeoclassicalEconomics #Nordhaus

https://www.youtube.com/watch?v=bsHQ_O-op8s

@PublicationsPro
"Unemployment is as low as it can realistically get (3.3%) for the labour market to continue to operate"

Why is this the limit of "realistic"? Especially given reporting of unemployment statistics only include those 'actively' looking for jobs, they're not a full tally of those out of work. Also that unemployment benefits are still kept low, in case a livable level discourages seeking work. Why is it not realistic to get this down to zero?

#unemployment #NeoClassicalEconomics