Economics: a discipline ripe for disruption | Editorial | Opinion | The Guardian


One thought on “Economics: a discipline ripe for disruption | Editorial | Opinion | The Guardian

  1. I think that article is all hot air. For one the causes of the meltdown were free-market reforms: banking deregulation (eliminating the separation of commercial and investment banks,) a failure to regulate the shadow banking sector, allowing predatory sub-prime mortgage lending, allowing complex “financial innovation” schemes that deceived investors and even bond rating agencies about the risk. Plus you have the fact that many plutocrats benefited immensely from manipulating the market and causing the crash.
    In Canada, the Liberal government (although free-market leaning) was prudent enough to see these measures were reckless. So in a sense, they seen it coming.
    Why didn’t mainstream economists? It’s not like a hole in the ozone or global warming where there is a mountain of science to back up predictions.
    Economics has failed to launch into a science; hypotheses are often driven by political agendas and ideas of how the structure of society should be (free-market conservatives want to be the ultimate rulers, above the law, and favor a pyramid-structure of society.)
    The real disruption required is for economists to start trashing their own profession. They need to weed out the quacks, charlatans and political agendas so they can build something up based on established facts. If civilization doesn’t make macroeconomics a science, civilization won’t survive. Since economic decisions are politically influenced, they are unreliable. That means periodic meltdowns are inevitable. That means economic chaos will translate to political chaos (like the Great Depression led to world war.)
    The fact is we had an economic golden age and economic stability in the post-war era using centrist Keynesian economics. Clearly they worked and need to be built upon. Free-market ideology has resulted in two global economic meltdowns: 1929 and 2008. How many more civilization will survive is anyone’s guess, but it probably won’t be very many.

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