#ows Philip Pilkington: Debunking Economics – An Interview with Steve Keen – Part 1 « naked capitalism

I don't subscribe to everything Steve Keen, but he really is one of, if not the, best intellectual "economists" out there. Here's a sampling:

...causal mathematical models of the relationships between economic variables, especially private debt, that anticipated this crisis....
My favourite here is the conflict between the neoclassical theory of the firm, which requires rising marginal costs, and the more than a hundred studies that have contradicted this –the most recent being Alan Blinder's 'Asking About Prices'. Rather than confronting this 'anomaly', neoclassical economists continue teaching and building models that assume rising marginal costs, and in fact the most (in)famous paper in methodology – Friedman's 'assumptions don't matter' paper – was written specifically to advise economists NOT to even read the empirical literature. When he argued that 'assumptions don't matter', the assumption he was defending most strenuously was the counter-factual assumption that marginal costs rise as output rises
I'm not joking, even though they played a huge role in encouraging the dismantling of so many regulatory structures from the time of the Great Depression – including the abolition of Glass-Steagall – they are now developing models that argue that what regulations there were led to the 'moral hazard' problem that caused the crisis in the first place.

Philip Pilkington: Debunking Economics – An Interview with Steve Keen – Part 1 « naked capitalism.

Steve really needs very carefully to read Jesus's words in the Gospels though. Frankly, real Christianity handles all of his concerns and then some (infinitely so).

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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