by Summary:
Mainstream economics is fundamentally flawed. It's like trying to drive a car without knowing how an engine works. Ignoring the role of energy in production is a critical oversight. Imagine a chef who believes cooking is just about mixing ingredients. What happens when they forget to turn on the stove? The meal remains raw, unappetizing, and ultimately inedible. This is what mainstream economics does when it disregards energy. It creates models that are disconnected from reality. We need models that reflect the true nature of our economy. Not fantasies built on assumptions that crumble under scrutiny. Think of a house built on sand. It may look good at first, but a storm will reveal its weaknesses. The Global Financial Crisis was a storm that exposed
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Steve Keen considers the following as important:
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Mainstream economics is fundamentally flawed. It's like trying to drive a car without knowing how an engine works. Ignoring the role of energy in production is a critical oversight. Imagine a chef who believes cooking is just about mixing ingredients. What happens when they forget to turn on the stove? The meal remains raw, unappetizing, and ultimately inedible. This is what mainstream economics does when it disregards energy. It creates models that are disconnected from reality. We need models that reflect the true nature of our economy. Not fantasies built on assumptions that crumble under scrutiny. Think of a house built on sand. It may look good at first, but a storm will reveal its weaknesses. The Global Financial Crisis was a storm that exposed
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
Merijn T. Knibbe writes Windows in the past. Some words on glass, the importance of repairing broken windows and GDP.
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Angry Bear writes Lots of Shoulds and Coulds in a Recital of a Potential Heart in the Harris-Walz Economic Policies
| Mainstream economics is fundamentally flawed. It's like trying to drive a car without knowing how an engine works. Ignoring the role of energy in production is a critical oversight. Imagine a chef who believes cooking is just about mixing ingredients. What happens when they forget to turn on the stove? The meal remains raw, unappetizing, and ultimately inedible. This is what mainstream economics does when it disregards energy. It creates models that are disconnected from reality. We need models that reflect the true nature of our economy. Not fantasies built on assumptions that crumble under scrutiny. Think of a house built on sand. It may look good at first, but a storm will reveal its weaknesses. The Global Financial Crisis was a storm that exposed these flaws. Mainstream economists were caught off guard. They were like sailors navigating without a compass. When the winds shifted, they had no idea how to adjust their sails. The result? A massive economic downturn that affected millions. We need to acknowledge the importance of energy. It's the lifeblood of our economy, just as water is to a plant. Without it, growth is impossible. Models must incorporate the realities of energy consumption and production. Only then can we create a sustainable economic future. Ignoring these truths is like ignoring the warning signs of a fire. By the time you smell smoke, it may be too late. We must act now to rebuild economics from the ground up. Let's create a framework that embraces complexity and reality. Only then can we hope to navigate the challenges ahead. |
Ah the fantasy. The fantasy that the pension debts don't exist.
So come on Steve, US or UK, how big are the unfunded pension debts?
The debts are the reality.
Pensions are always the same as debt. So I wonder, what you are talking about.
@@ThomasVWorm Exacty.
People have paid the state in the past, and now the state is obligated in the future to pay them according to a formula.
Borrowing and Pensions, identical.
However, I know what the borrowing is.
Total Amount Outstanding (including inflation uplift for index-linked gilts) = £2,547.14 billion nominal
That's this morning's number. Up todate.
Can you find the number for the public sector pensions?
ie. Civil servants and for the state pension.
If you can't how is Steves model of the economy not a fantasy when he doesn't include it?
@@ThomasVWorm Just to give you a heads up. I agree entirely with you that pensions are one of the debts.
However, most posters here are of the view that pensions are not a debt.
The implication, hand over your cash, we'll spend it. When you need that pension, well silly you, its not a debt.
Not relevant. Pensions can be met like any other state obligation to pay, by issuing its own currency to furnish the need. The waste comes from the very few. Almost all the money a nation produces flows directly into the idle rich, who use the captured public resource to extract tribute from rents.
The problem is the car, not its fuel economy. You can't fix a ponzi scheme by journaling its process.
The MMT Provisioning concept tells the story, the people are the engine that makes it own fuel, or it did until fossil fuels were brought in to power it up, and it still does but it is grossly out of control economically and Thermodynamically, not in balance with the global ecosystem.
Perhaps the world needs fewer models and more financial common sense.
It would also help if people took a more critical view of numbers that come out of black box computer models.