Quote:
Originally Posted by The Demon
Hmm what's wrong with mainstream economics? Well, Keynesian economics is predicated on the consumer spending model and posits that stimulus spending would increase consumer spending. This is THE fundamental flaw with keynesian economics. What those economists don't understand is that for their scenario to be remotely possible, the government should be running a budget surplus or a trade surplus. When we are running deficits, keynesian principles tend to send the economy into a downward spiral.
|
whats wrong with mainstream economics is that it hasn't accurately predicted a number of the critical events of the past 30 years, including specifically multiple bubbles, the systemic corruption that followed deregulation, and the recent loss of 12 trillion in individual wealth (using one commonly stated number, which I take from barry ritholtz), among dozens of other events. all of these events were defended by economists and pundits while they were happening, and have yet to be explained by said pundits.
so as far as I'm concerned, the entire edifice of economic theory is suspect.
and, more crucially, discussing theory doesn't accomplish anything real, that occurs in the actual economy and political and social systems.
so, I prefer to focus on real world examples and the complexities of realpolitik.
in your presentation above, you are arguing by assertion, you provide no evidence to support your assertions, you dont present your assertions particularly well, they are 80% or more editorial comment.
editorial is not argument, it is commentary.
now, like I said, I reject economic theory as the basis for real world problem solving, because it hasnt been predictive.
but if you want to restate your arguments so that it's not purely theoretical, using real world actual examples, who knows, we might get somewhere.
I think it's too bad you chose to defend theory rather than attacking my realpolitk suggestion.
I do not anticipate that you and I can debate particularly well. I'm not particularly interested in debating the things you care about, and I suspect you aren't interested in debating the things I care about. Unlike some, it's fairly hard to pull me into debating something I consider not relevant to my interests.