Now this is good

hat-tip to ‘Waymad’ on     An excerpt below:

In the Eye of the Storm: Updating the Economics of Global Turbulence, an Introduction to Robert Brenner’s Update

by R. Taggart Murphy


Out in the academic cemetery to which avatars of market fundamentalism thought they had consigned their intellectual and political opponents, one can hear today the unmistakable scrape of coffin lids opening. And climbing out of their graves are the bodies of those who contend that the reductionist assumptions of neo-classical/ rational choice orthodoxy are not simply inadequate but flawed in the most fundamental sense.

The reason may seem obvious: the financial catastrophe of last year and the failure of so many established thinkers to see it coming. But there is more dogging the luminaries of mainstream finance and economics than the simple inability to have read the tea leaves properly – to their blindness, for example, in the face of the rise in U.S. housing prices to the point they no longer bore any relation to the earnings streams of much of the American population or to the fantastic assumptions about default rates built into the business models of too many Wall Street houses. To be sure, a few non-mainstream analysts did get these things right before the fact — Nouriel Roubini, for example, or Michael Lewis. But it was in the way the crisis took the entire policy establishment by surprise that we see signs of broader, systemic conceptual failure. Policy makers in Washington, London, Frankfurt and Basel were, after all, advised by intellectuals and analysts privy to the most supposedly up-to-date thinking about markets, about finance, about economic reality. That they could get things so very, very wrong points to deliberate, self-induced myopia over the complexity of and interrelationships among economic and political realities – a myopia that surely contributed to the worst economic crisis since the Great Depression.

The only thing it doesn’t address is the resource question, but this fellow gets the exponential function, that’s for sure.


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