Steve Keen has posted a guest post on his popular Debtwatch website.
Readers of this blog will have encountered the idea that near-equilibrium neoclassical economic theory is irrelevant to dynamic, far-from-equilibrium, real modern economies, and that the body of theory built around the neoclassical assumptions is full of inconsistencies. You will also be familiar with the idea that money and debt play central, dynamic roles in modern economies.
Yet it can be argued there are other equally fundamental flaws in the broader stream of theory and practice that might be called mainstream economics.
– See more at: http://www.debtdeflation.com/blogs/2013/12/07/sack-the-economists/#sthash.oWYTzwRS.dpuf
[A good piece from one of my favourite sources, Campaign For America’s Future (formerly TomPaine.com). Read the Greider piece too, it’s not very long.]
by Dave Johnson
Have our trade policies helped or hurt the country? You can look down at equations and models, or you can look up and see what is happening around you. Equations and models will tell you that “free trade” is a good thing. But if you look up and see what is happening around you … “not so much” is such an understatement. So a comparison of what economists predicted “free trade” would bring with what has actually happened might help us find a way out of the economic mess we are in.