Climatologists & scientists have a moral imperative to repudiate economists; consider the stakes.
‘Their review finds no critical tipping elements with a time horizon less than 300 years until global temperatures have increased by at least 3°C.k (Nordhaus 2013, p. 60. Emphasis added)
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“Pardon me for stating the obvious, but Nordhaus's reading of this paper is almost the exact opposite of what the paper actually said.”
Economics is not an objective science because it rejects math and empirical data that contradicts their ideas. Like the Church, they refuse proof their models of economics are fundamentally broken.
People should attend to this becuase theie faulty ideas and models rendered them blind to the GFC. They don’t understand credit’s rule in the economy (!) and they certainly don’t understand its role coupled with prices that drives money into the hands of the morbidly rich.
"Though I have been interested in ecological economics ever since I read The Limits to Growth (Meadows, Randers, and Meadows 1972), E.F. Schumacher (Schumacher 1973, 1979) and Hermann Daly (Daly 1974) in the early 1970s, and I have been a critic of Neoclassical economics for just as long, I didn't start critiquing the Neoclassical approach to climate change until 2019."
There’s also another imperative here: market share drives corporations, it comes from the math governing manufacturing costs. The largest factor is fixed costs (the factory). The more they sell, the lower fixed costs becomes to the capital investment. This motivation can be seen as ‘natural’, in the sense of making the most of any effort. The impulse to efficiency is another dynamic. It drives avarice (market share).
#SteveKeen worked out the correct math governing profits
Finance and Economic Breakdown: Modeling Minsky's "Financial Instability Hypothesis"
Minus the math, which can be skipped over, for his discussion, the paper lays out the basics of modern economics wrt to economic cycles and labor v capitalist v creditor (banks) income.
It’s the basic model to reason about our economy and its state.
“ One look at this chart should be sufficient to understand why the Great Crash of 1929 was both great, and a major cause of the Great Depression which followed it, and why levered speculation, rather than rational calculation, dominates the behaviour of asset markets.”
I’m kind of curious what the system response (of housing prices) to a deceleration of interest rates. If price changes reflect acceleration of home loan interest rates, how does a deceleration propagate into the economy? The US economy is built upon the housing sector. It plays an outsized role in economic health.
The remarkable aspect of mainstream economists is their persistence treating values in (digital) ledgers as actual instances of banknotes (physical paper) as their mental model, then selectively dropping the model.
"The Neoclassical (and Austrian) economics vision of free market capitalism is one of an anarchist utopia. When free of non-market distortions—government intervention, unions and externalities—and bereft of monopolies, the Neoclassical model of capitalism achieve “Pareto Optimality”: a point at which no-one can be made better off without making someone else worse off. "
Tim Lenton and Steve collaborated on another report for which those with pensions or those who have those with pensions can press their funds to respond to. It's their fiduciary responsibility to accurately assess risk (see pdf below)
Steve’s macro from macro derivations are solid (because mainstream theory of macro from micro is equivalent to saying tennis is just atomic electrostatic interactions)
but still, there’s a different kind of place small scale could effect macro, if they exist
File this under the heading economics is not even a dismal science, because mainstream economics isn’t even science. Economics could actually be a rigorous discipline, if orthodoxy can be kicked out.
“ In contrast to its attitude to private debt, which it ignores, mainstream economics obsesses about government debt. But this volte-face doesn't besmirch its record of being 100% wrong.”
It goes beyond that and doesn’t need game simulation (although it’s a great teaching tool).
#SteveKeen has modeled macro from accounting identities which follow closely empirical economic behavior and has debunked mainstreamers for 50 years (as others have).
The mainstream’s refusal has as much to do with an the established thinkers refusing to budge as it does the immense ideological interests of wealth that uses them to legitimize their dominance.