Steve Keen’s Debt Watch

The belief that climate change will have minimal economic impact is dangerously flawed. Imagine a factory. It relies on energy and raw materials. Now, picture that factory in a world where climate change disrupts energy supplies. Suddenly, the factory can't produce as much. That's not just a minor hiccup. It's a major economic blow. Economists like William Nordhaus assume that 85% of the U.S. economy is unaffected by climate change. This is like saying a ship can sail...

Wage Growth Is Not a Myth!

Neoclassical economists ignore the instability of capitalism. This is a common belief. Many think capitalism is a stable system. They believe markets naturally find equilibrium. But this is fundamentally wrong. Hyman Minsky showed us that rising debt leads to economic crises. His insights reveal that debt accumulation creates instability. When debt rises, so does risk. The more we borrow, the more vulnerable we become. This isn't just theory; it's history. Look at the...

Wealth Effect: A Federal Reserve Myth.

To tackle economic instability, many believe that simply tightening regulations on banks and financial institutions will do the trick. This belief is fundamentally flawed. Regulations alone won't address the root cause of instability, which is excessive private debt. When people are drowning in debt, they can't spend. This leads to a vicious cycle of reduced consumption and economic stagnation. In fact, during the Great Depression, the more debtors paid, the more they owed. This...

Private Debt: The Looming Economic Abyss?

Neoclassical economists claim money doesn't matter. This belief is as absurd as saying water doesn't matter for a fish. Money creation by banks fuels production and growth. Imagine a car running on empty. It won't get far. Ignoring money's role is like ignoring fuel in an engine. Mainstream models often omit banks and private debt. This is akin to a chef ignoring ingredients in a recipe. Without understanding how money flows, we can't grasp economic reality. Take the 2007...

Engineers, Finance, and IT Pros: Learn 50+ years of Real Economics in only 7 Weeks. Weekly with me. Learn more: apply.stevekeenfree.com OR Join ~10,000 others in downloading my free 'Funny Money' Bundle (2 books, worth $60): new.stevekeenfree.com -- Who is Dr. Steve Keen? Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against...

Debt Crisis: Japan's Warning for Us!

Climate change isn't just a minor inconvenience. It's more like a ticking time bomb. The idea that a 1.4% GDP drop is the worst we face is laughable. Imagine predicting a storm and only preparing for a drizzle. The reality is that climate change will wreak havoc on economies. It's not just about rising temperatures. We're talking about food shortages, energy crises, and social unrest. Countries will hoard resources like kids hoarding candy on Halloween. Those with enough food...