Sunday , November 24 2024
Home / Mike Norman Economics / Economist Dennis Snower Says Economics Nears a New Paradigm — Yves Smith

Economist Dennis Snower Says Economics Nears a New Paradigm — Yves Smith

Summary:
I agree with Yves' intro. Blah blah. But the article contains a short summary of the assumptions on which conventional (neoclassical) economics is based, and it is useful for that.The shortcoming of conventional economics is simple to diagnose. It is focusing overly on economic factors in complex adaptive social systems (human groups, societies) when other factors are not only relevant but also determinative, like social stratification, power, and distributional effects not only of income and wealth but also access that leads to unequal opportunity. But as Yves observes, economics is not really about economics but rather class power. You know, like Marx and Veblen told you.  Actually, Adam Smith too. So it is not like this is something new.The consequence for conventional econ? Fail.New

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Matias Vernengo writes Elon Musk (& Vivek Ramaswamy) on hardship, because he knows so much about it

Lars Pålsson Syll writes Klas Eklunds ‘Vår ekonomi’ — lärobok med stora brister

New Economics Foundation writes We need more than a tax on the super rich to deliver climate and economic justice

Robert Vienneau writes Profits Not Explained By Merit, Increased Risk, Increased Ability To Compete, Etc.

 I agree with Yves' intro. Blah blah. But the article contains a short summary of the assumptions on which conventional (neoclassical) economics is based, and it is useful for that.

The shortcoming of conventional economics is simple to diagnose. It is focusing overly on economic factors in complex adaptive social systems (human groups, societies) when other factors are not only relevant but also determinative, like social stratification, power, and distributional effects not only of income and wealth but also access that leads to unequal opportunity. 

But as Yves observes, economics is not really about economics but rather class power. You know, like Marx and Veblen told you.  Actually, Adam Smith too. So it is not like this is something new.

The consequence for conventional econ? Fail.

New paradigm? That involves a power struggle in which money and position talk.

That leaves the historical dialectic to sort it out.

Naked Capitalism
Economist Dennis Snower Says Economics Nears a New Paradigm
Yves Smith

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *