Debunking Economics: the Failure of Neo-classical Economics with Steve Keen
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- Опубликовано: 27 июл 2024
- Steve Keen is the probably one of the most entertaining and controversial economists in the world today. He has attracted significant attention for his scathing critiques of conventional economics. This is a must see event for any economics student. You can learn how everything you’ve been taught in your course so far is meaningless and fundamentally flawed! For anybody else it will be a fascinating insight into alternative ways of thinking about the economy. There will also be time to ask Steve questions during the event. He has many interesting positions and much of his work has been centred on predicting financial crises.
Hosted by: George Moran, Speakers' Officer
Please subscribe to our channel to be notified about future events and check out our past events. This will be a fascinating event which will challenge the foundations of economics.
I'm not an economist, but from my perspective in the field of biology, the assumptions, models, methods, and claims of economics have long seemed absurd to me. Yet business and economics people react as though I'm the one who is insane. They also seem blissfully unaware that anyone in the Natural Sciences putting up a paper using the same methods and standards would be rightfully mocked and ridiculed.
As a psychologist, this makes me even more skeptical about the ‘new’ behavioural sciences based on nudge theory and economic models of consumer behaviour. Thanks for sharing.
Me: "Help, I'm going to fall from the 10th floor of my building."
Neoclassical firefighter: "We've surveyed all the residents of the building and found that height off the ground has no correlation with health. You'll be fine."
Assume a trampoline
I have heard even a better one:
"What does an economist think when he sees 20 bucks on the floor? He assumes that if there really were 20 bucks on the floor someone would have already picked it up, so obviously it must be a hallucination, there are no 20 bucks on the floor"
I'm sorry, isn't that what they did in the research described? They surveyed companies, and then determined rising marginal cost doesn't tend to happen because of the responses they were given? It might have been a better idea to actually look at the company's data and financials.
For those of us who have raged over the rather obvious and perverse elements of standard economics this lecture is hilarious and gratifying. For the longest time they have pulled assertions from their nether regions and not one of their colleagues cried fowl or even ran away from the smell.
@42:30 (and relevant to the tax question @1:05:00) note that war bonds did not really significantly provide the fiscal space for war spending. In the UK in particular it was rationing that was the main inflation control. Likewise today in getting green energy infrastructure up and running governments will not need to sell green bonds, they could, but it is regressive, since it hands out free money (interest) to only those who can afford to purchase bonds in the first place. It will be more progressive to ration "use of carbon" (e.g., concrete, air travel, high NCE foods) and the more polluting forms of energy generation, and impose the rationing inversely to incomes. If only there will be the political will.
@1:50:00 yeah, Thailand did not really do so well. Sure they contained covid, but they completely crashed their hospitality and tourism industry and failed to provide full wage subsidies for those workers who are now almost completely uberized. Same in NZ. F-ing disaster for the precariat. Just not as bad as the USA. Writing from NZ I can tell you we did bloody well by world standards, we've got pro-cricket and the America's Cup going full blast, and it all looks fantastic, beautiful summer Christmas with BBQ's and all,... but still needless suffering heaped upon those who could least afford it, the unseen unheard poor. I mean, we've actually now got Dalit in New Zealand.
Thailand & New Zealand did not know to employ & pay each person as an
emergency public health worker?
Did not know to pay them the equivalent of USA-$25 for every of the day's 24 hours
& then employ & pay them for 42 days?
Such a wise action to free billions from Bull-Shit Jobs, lower Co2 pollution &
isolate Covid-19 was not done worldwide. Why think Thailand or New Zealand would be
smarter than the average Yogi-Bear?
If you took 1000 economists and joined them end to end they would never reach an agreement.
When it comes to the math derivation that derivation is only correct if w times L / Y is constant. Otherwise, the integration step is wrong, as alpha depends on time. Also, when you integrate you add a constant C, which after you get rid of the logarithm will become multiplication by C.
If I am shopping for three commodities; gin, tonic and lemons, I do not need to consider all possible trolleys , I.e 3 to the power of 7 = 2,187! I just need to know how many people at my party drink gin and tonic with a twist of lemon.
That's microeconomics. In the macro it is a totally different story. Due to the volumes sold in the aggregate, one cannot make the neoclassical assumption everyone purchases with perfect utility maximization. To do so commits a fallacy of composition Read his book _Debunking Economics._
...and as Keen said, even micro cannot be derived from micro. Suppose price of tonic rises. Instead of buying less I might just buy none. Or, someone else might buy a lot more tonic to hoard it, thinking the price will rise more in future. You cannot say that's irrational, since no one can predict the future. And the aggregates will not necessarily average out to neoclassical rationalism. Any scant look at price data will show you neoclassical is plain wrong. When we bring time into economics we get such non-linear dynamics based on human behaviour under uncertainty. Behavioural economics has far more to say about this than neoclassical econ.
Another example: as crude oil prices dropped from insufficient demand in 2020 companies bought less crude, not only on average, but across the whole market, since storage costs became too great during the pandemic. Look at any single commodity market and you'll find similar dynamics due to interrelations with other markets.
The speaker might have confused neoclassical economics with neoliberalism interpretation. Another problem is that his emphasis on dynamics might be a misunderstanding about the purposes of neoclassical economics. The objective here is not to predict but rather to see what happens if certain assumptions can lead to meaningful results, which might have practical policy implications.
3,501 views on MON 18 APR 2022 - - 20:40 hrs ( -5 GMT )
@22:00 Blanchard is even wrong about his "long slog." Modelling the real economy as distortions to a "completely competitive" economy is a bogus notion which suggests classical _physics envy._ (Physicists use perturbation theory in QFT because they have no other viable option.) But the physicist is perturbing a zeroeth order linear system. What's the correct analogy in macroeconomics? It is not a perfect competition system! In economics the zeroeth order is in fact a perfectly fair (non-competitive) system with trade parity, cooperation and everyone spending all their income. The non-linear distortions are _adding in competition,_ equity imbalances, trade imbalances, savings leakages, wealth imbalances and the rest.
Sort Newest 1st Sharing is caring tinyurl.com/y2x5bzhj or ruclips.net/video/bYMsO1j9XAk/видео.html .
00:00 - 00:54 - 01:25 - 01:50 - 03:24 - John Blatt
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29:00 - M M T
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29:50 - May his bank account henceforth always be w/o money LOL
Sheerest brilliance imo.😏😳🤭
L O L [ If two foolish neoclassical economists, with pockets full of lead, are dropped from the Top of the . . . ] L O L
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1:00:58 - Geo.
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39:49 - MMT in M I N S K Y ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
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51:40 - Imagine that < grin >
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Load of wishful thinking and delusions of superior knowledge which in reality is best described as rubbish !
You seem to really hate Steve Keen so could you enlighten us in your own economic views?
@@camcorl7921 Firstly - i don't hate Steve Keen. -I hate what he says and can't back up with independent facts or reasoned logic or the fact he walks away from explaining his own statements. For example I believe he has a very poor understanding of how trade between businesses involved in exporting and importing is financed which is evident in his discussions with one of his own fellow MMT founders- Warren Mosler.
My own economic views about what particular macro subject ?
@@Rob-fx2dw Not a particular macro subject simply your views on economy as a whole, the field I mean, its methodology ect. Which currents you agree with and generally your views on all that jazz? Like are you a behavioral economist, which economists do you agree with, what are the economic textbooks, models and other such stuff you would recommends. What are your own views?
@@camcorl7921 Firstly all of the designated official money is fiat money and it is connected in the economy and all money only has value because it is accepted by others as a means of comparing values of goods and services. No goods and services means no value to the money.
Wealth is not money but money itself merely is a means of comparing wealth and transferring that measure to another entity or saving that measurement for the future.
There is no credibility in believing that one entity in the economy has any exclusive innate ability to create wealth more than any other. For instance creating a situation be it by law in which one entity has a legal right that is forbidden to others does not create wealth. All it does is enable wealth to be reallocated.
If you want to learn more about the economy than refer to the work of Prof. Stephen Hanke of Johns Hopkins University because he has a very good handle on how the economy works and has worked over time.
@@Rob-fx2dw okay so if I'm getting things right you lean on the free market economy side of things. I'll get back to you in a few years perhaps if I remember this.
If you want slaves, why educate them to be masters.
This lightweight extends beyond even today's insistence on banality.
The most frightening image I can conjure is this person being in charge of anything.
No arguments, only insults. He and others, similar to him proved economics wrong. You believe nonsense that has no bearing to reality. Empirical evidence shows the exact opposite from the nonsense in which you believe in. Of course, if you cared about evidence and logic you would have changed your stance a long time ago. You pretend to believe in supply and demand nonsense because you want to believe in it, you don't care about evidence not a tiny bit. Economics is not science, it is pure mythology and propaganda. Try doing physics with the same rigor economics or psychology is done and you would be laughed out of the room.