Tag Archives: free markets

Neoclassical economics III: a machine to destroy the world

[Published at Pearls & Irritations 23 Sept.]

The false nostrums of the pseudo-science of neoclassical economics have been used to create a system that promotes endlessly increasing consumption of resources and endless elaboration of technology. This system already operates far beyond the needs of people. Our survival requires that we rein in the machine and return to proven and durable, social and moral forms of organisation.

Growth has a fundamental place in the biological world, of which we humans are a part. Unchecked growth has no place, outside of the microbial world. Unchecked growth is called a plague, an epidemic or a cancer.

Growth, among mainstream economists, has become a reflexive, mindless goal, specifically growth of the Gross Domestic Product. Growth of the GDP is the dominant global criterion for allegedly successful management of an economy. GDP is an indiscriminate measure of what we spend money on: some things good, some useless, some bad and, increasingly, some attempting to repair damage from previous spending. GDP is not a useful measure of our quality of life, whose improvement should be the real goal, but it does correlate with resource use and resource waste, also known as pollution.

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Neoclassical economics II: pseudo-scholarship

[Published at Pearls & Irritations, 22 Sept.]

Neoclassical economics is without scholarly integrity. It does not belong in universities. It certainly should not be the dominant source of policy advice to governments.

Most scholarly disciplines, be they history, physics or ecology, have a conception of appropriate standards by which the evidential basis of an argument is presented and the reasoning leading to conclusions is explained. The goal is to shed light on the workings of the world, and a criterion for a successful study is that observations or records are consistent with the study’s conclusions.

Neoclassical economics, the strand of economics that has dominated world policies for several decades, fails these criteria. Its conclusions are regularly contradicted by developments in the real world. A dominant criterion for a successful study is that its logic is internally consistent; it thus confuses mathematics with the science it claims to be. It is variously claimed that assumptions on which a theory is based don’t matter, or that the better the theory the more unrealistic the assumptions, or that all theories are wrong. It imagines its theories are useful approximations to reality, and fails to appreciate that more reasonable assumptions can lead to radically different conclusions, so its theories may be deeply misleading.

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The betrayal, corruption and capture of the Liberal Party

[Published at Pearls and Irritations, 6 May]

The Liberal Party has strayed far from the vision propounded by its founder, Sir Robert Menzies, to the point of being captured by special interests.

According to former Senator Ron Boswell, Sir Robert Menzies, founder of the Liberal Party of Australia, said in 1970 

Australian Liberals are not the exponents of an open go, for if we are all to have an open go, each for himself and the devil take the hindmost, anarchy will result and both security and progress disappear

This is a clear repudiation of the idea of unregulated markets, an idea that came to dominate the world and the Liberal Party a decade or two later.

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An economy that supports healthy communities, local and planetary

[This is a talk given to the Canberra Hub of New Economy Network Australia, 23 June 2019 on the topic ‘What could our economy look like in 2030?’ Check out NENA, I think it is a very promising network.]

At present our economy is structured and managed in ways that subvert the many good things people like us are trying to do.

I think it is possible to change that, so the larger economy supports clean, local, healthy living, strong communities and a thriving planet.

First, a few examples of good things that are already happening and just need to be promoted, examples involving food and energy: Continue reading

The Myth of the Robust Deregulated Economy

[Published at Pearls and Irritations 3 Dec 18]

The economic ‘reforms’ of the 1980s are supposed to have set Australia up for an unprecedented run of prosperity: 27 years, and counting, without a recession. The economy’s robustness is supposed to have saved us from the Global Financial Crisis. In fact our economy has been unstable, and its performance has been mediocre verging on anaemic. Any appearance of robust prosperity is due to a huge run-up of debt, some direct intervention, high immigration, overwork, selective blindness and over-active imaginations.

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Interview: Renegade Economists (3CR)

I attended the New Economy Network Australia conference in Melbourne recently (19-21 Oct). There I met in person Karl Fitzgerald who does a spot call Renegade Economists on radio 3CR , and with whom I’d done an interview a few years ago. We didn’t manage an interview at the conference, but did one by phone a couple of days later.

I found NENA to be a very diverse group very engaged with each other. They even listened to my pitch about The Little Green Economics Book and bought copies. There are so many people and groups doing good things, my impression is that NENA is likely to spread rapidly and link us into a more powerful movement. It was just their third annual conference.

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New eBook: The Rise and Failure of the Radical Right

The Origins of Australia’s Political Disarray

The right-wing ideology of the past 40 years has failed. It was always going to fail, because it is based on nonsense ideas, and because it harms people and the natural world. Australian politics has been dragged far to the right since 1980 because both major parties embraced an agenda promoted by right-wing radicals. Now the radical right’s grip on power is finally slipping. We are poised for a major political re-alignment.

A BetterNature Short Book (14,500 words).

Released 4 May 2017. May the Fourth be with you.

Now available on Amazon.

See more about my books, existing and forthcoming, here.

We Need to Move Beyond Free Markets

trickle-downSuddenly our leaders and their lackies are all over the airwaves warning the unwashed hordes of the perils of rejecting the glorious benefits of free markets and free trade, as those ingrates have done in the US and UK.

Their favourite line is “Twenty five years of uninterrupted economic growth.” You hear it almost every day. It represents unparalleled economic success. It is uniquely Australian, because no other country avoided the 2008-9 recession. It’s all because of Australia’s lean, deregulated, open, agile economy, managed brilliantly by [insert current Treasurer].

Except for two little caveats. Australia’s economic performance during the neoliberal era has never matched that in the post-war decades to the early 1970s. And we avoided severe recession in 2008-9 only because the Rudd Government intervened heavily in the economy.

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To Make a Living We Must Wreck Our Home?

Coal mine amidst farmland

Coal mine amidst farmland

[Published on Independent Australia 14 May]

I spend a lot of my days trawling the follies of our time. To avoid sinking into the mire of despair I need to keep a firm hold of love and hope and grandchildren. But every now and then something lands too heavily in my heart, and I can only grieve.

Tarwyn Park is the Hunter Valley property where Peter Andrews worked out how to get the water back into the ground, by reconstructing a degraded creek so it flows slowly and the water can soak across the valley. His work is revolutionising the way we live in the Australian landscape, restoring its original productivity and resilience in the face of our challenging climate. We learnt last Monday, May 4th, in the ABC’s Australian Story that Tarwyn Park has been, very reluctantly, sold so it can be dug up for the coal that underlies the valley. It would be hard to find a more apt metaphor for the blind stupidity of Australia’s ruling class.

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