Interview about Rebuilding Economics from the Top Down with The Dissenter
Ricardo Lopes, AKA The Dissenter, interviewed me about my manuscript Rebuilding Economics from the Top Down
We first discuss what economics is and its role in society, and the main tenets of mainstream economics, with a focus on supply and demand. We also discuss why these ideas are mainstream, and its real-life consequences.
We talk about the 2008 economic crisis and how it should have been dealt with. We talk about an alternative approach to economics based on complex systems theory, and explore the example of how employment rates and wages evolve over time. We also discuss debt, inflation, how prices are determined, how money is created, and the role of banks.
We talk about what GDP is, and the differences between financial capitalism and industrial capitalism. Finally, we discuss the risks associated with climate change, and economic solutions to it.
Time Links: 00:00
Intro 00:27
What is economics? 01:30
The tenets of mainstream economics 09:30
Supply and demand 24:35
Why are these ideas the mainstream? 33:35
How economics has real-life consequences 36:37
The 2008 economic crisis 43:29
Complex systems theory in economics 50:54
Employment rates and wages 57:41
Debt 1:04:01
Understanding inflation 1:12:07
How prices are determined 1:14:47
How money is created, and the role of banks 1:27:30
What is GDP? 1:37:43
Financial capitalism and industrial capitalism 1:42:03
The risks of climate change 2:02:37
Economic solutions to climate change 2:05:33
I serialised the chapters of the manuscript on this blog: the first chapter is:
The Magnificent Failure of Mainstream Economics
For the last fifty years, the development of economics has been driven by the desire to derive macroeconomic analysis directly from microeconomic theory. This research program is a theoretical and practical failure—though Neoclassical economists haven't realised this yet, and probably never will.
The full manuscript is available to supporters at:
Manuscript of Rebuilding Economics from the Top Down
I have just completed a very productive and enjoyable six months research project at the Budapest Centre for Long-Term Sustainability (https://bc4ls.com/). It was the first substantial "sabbatical" I have had since the 6-month sabbatical from the then University of Western Sydney in 1999-2000, during which I wrote the first edition of
Always good to hear Steve going back over the basics with a podcaster who's able to ask intelligent questions. It behoves us all to internalise the arguments as a sourcebook for our own interactions.