Home > Economics > Wowsernomics: economics – religion or science?

Wowsernomics: economics – religion or science?

I can’t say that I agree with everything that Steve Keen says but I sure enjoyed his talk entitled “Wowsernomics – the madness behind modern economics theory, policy and practice”. Here he attacks neoclassical economics and it’s idea of equilibrium. He likens modern economics to religion. I agree with Steve Keen on that score – economics is like religion or ideology. i.e. you have to “believe” in one view or another e.g. you are either a lefty or a righty.

I am not certain that a theory of economics can be completely addressed mathematically i.e. how the human response can be modelled accurately. Much of economic policy is driven by politics. Before listening to this lecture I had assumed that economists’ used uncertainty in their models but apparently not. It would be great to see a computer simulation of the economy to see if it supports the Austrian view (something like the flocking algorithms that games programmers sometimes use).

I still don’t know what the idea of economic equilibrium is. The Austrian’s don’t seem to talk about it. The Mises Institute recently produced a Stabilisation is Chaos T-Shirt. They seem to be believe that the market “chaos” is superior to government stabilisation.

It’s a shame that some of the audio is cut off at the end. Some audience questions are missing 😦

  1. March 25, 2009 at 00:05

    Check Fred Foldvary’s interviews on this page. He discuses the importance of free banking, austro-georgian economics and equilibrium at a ‘certain point in time’.

    If you want lower taxes and support of the productive economy over and above the speculative capitalism, then a move to land based taxes must be adopted in this world of highly mobile capital.

    Or should we continue to support the privilege of property flippers and mining magnates over and above the right to a decent reward for effort for small business?

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