The Logic Freaks of Neoclassical Economics

The old-school practitioners completely missed the meltdown ... is it time to paradigm shift them out of power?
The Logic Freaks of Neoclassical Economics

The typical lifespan of a recession is about five years. The Great Depression lasted ten. But downtrends in the larger planetary economy can go on far, far longer. Economists are now warning us that the global economy is in danger of experiencing a lost decade, similar to the one Japan experienced after its real estate and equity bubbles burst in the ’90s. But the economists stop short of cautioning that we risk losing a century, or even a millennium, if climate change suddenly lurches out of control. The logic freaks of neoclassical economics don’t like to talk ecology – their models don’t account for melting glaciers, dying coral reefs or the possible collapse of the entire Australian continent. But the reality is that it takes centuries to restore codfish to the Atlantic or to reboot a coral reef and it takes a thousand years to grow a single inch of topsoil. This is the kind of bio-speak that falls outside the theoretical framework of neoclassical economists. They’re much more comfortable talking money – the language of liquidity, stimulus packages and hedge fund regulation. There is no discussion within their profession of the real-world impacts of their economic philosophies.

The moment in human history when our planet started crashing and gave birth to a thousand years of sorrow.

 

So as we struggle through this recession, bear in mind that there is something profoundly more ominous afoot than what you see reflected in your bank account or the stock market numbers. This year might not be remembered as the beginning of the second Great Depression, but as the moment in human history when our planet started crashing and gave birth to a thousand years of sorrow. Are we in denial about this … casually going about our lives while humanity’s long-term prospects fade?

Kalle Lasn

46 comments on the article “The Logic Freaks of Neoclassical Economics”

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Anonymous

Consider Paul Samuelson. In 2003, Samuelson was one of the 10 Nobel Prize winning economists signing the Economists' statement opposing the Bush tax cuts. Here's a bit he wrote for Noozeweek: "To prove that Wall Street is an early omen of movements still to come in GNP, commentators quote economic studies alleging that market downturns predicted four out of the last five recessions. That is an understatement. Wall Street indexes predicted nine out of the last five recessions! And its mistakes were beauties "

Anonymous

Consider Paul Samuelson. In 2003, Samuelson was one of the 10 Nobel Prize winning economists signing the Economists' statement opposing the Bush tax cuts. Here's a bit he wrote for Noozeweek: "To prove that Wall Street is an early omen of movements still to come in GNP, commentators quote economic studies alleging that market downturns predicted four out of the last five recessions. That is an understatement. Wall Street indexes predicted nine out of the last five recessions! And its mistakes were beauties "

Dann

Solution, indeed. Or is this just a "things suck and need to change but let's just point fingers" post?

Dann

Solution, indeed. Or is this just a "things suck and need to change but let's just point fingers" post?

Anonymous

The solution is a mass of grass roots and community change, combined with constant and increasing pressure on governments to bring about the change we want. There needs to be enough public support for change for the government to consider the large scale change needed. Currently it is political suicide for the government to consider getting rid of a thousand jobs here for a forest there that everyone says they care about but no one wants to take responsibility for. Swap your car for a bike. Stop buying so many damn clothes, stop consuming so much. Spread the word and form communities that care and put pressure on local government. Work with eco-friendly companies or get a job in sustainable industries. Laying blame is an excuse to get out of taking action. For those that do all this thats great, but we need to do more. Sure its the government's responsibility to represent the people but will we continue to sit quietly in front of the tv listening to reports of disappearing forests, animals going extinct, bleaching corals, flash floods and droughts while spending our disposable income on fashion and plastic culture and ipods while a billion people in developing countries work 12 hours a day for a bowl of rice and live in squalor that would be considered worse than a jail cell in south east asia?

Anonymous

The solution is a mass of grass roots and community change, combined with constant and increasing pressure on governments to bring about the change we want. There needs to be enough public support for change for the government to consider the large scale change needed. Currently it is political suicide for the government to consider getting rid of a thousand jobs here for a forest there that everyone says they care about but no one wants to take responsibility for. Swap your car for a bike. Stop buying so many damn clothes, stop consuming so much. Spread the word and form communities that care and put pressure on local government. Work with eco-friendly companies or get a job in sustainable industries. Laying blame is an excuse to get out of taking action. For those that do all this thats great, but we need to do more. Sure its the government's responsibility to represent the people but will we continue to sit quietly in front of the tv listening to reports of disappearing forests, animals going extinct, bleaching corals, flash floods and droughts while spending our disposable income on fashion and plastic culture and ipods while a billion people in developing countries work 12 hours a day for a bowl of rice and live in squalor that would be considered worse than a jail cell in south east asia?

mattincinci

there is a solution to the outdated monetary system and the cycle of consumption planned obsolescence waste and deliberate scarcity http://video.google.com/videoplay?docid=3932487043163636261

mattincinci

there is a solution to the outdated monetary system and the cycle of consumption planned obsolescence waste and deliberate scarcity http://video.google.com/videoplay?docid=3932487043163636261

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