schools of gumming

Eric Garland:

There’s a whole ton that economists don’t do:

  • SOCIAL TRENDS like Boomer retirements, a culture of hiring and firing people every four minutes,
  • TECH TRENDS such as ubiquitous wireless communication flattening hierarchies and enabling global collaboration,
  • ECOLOGICAL TRENDS such as water shortage and the end of cheap energy,
  • POLITICAL TRENDS such as the removal of primacy of states and even European nations in favor of central bank currency manipulation and fiat economic activity.

Uh, sort of everything except their incredibly narrow abstraction of the universe.

I’m going to just say it – neoclassical economics is basically worthless. Its ludicrous curves and CIGS, its absurd Keynesian Katfight, its outmoded and ignorant concept of “gross domestic product” – their intellectual output simply is useless in the real world. Their performance in response to the last two years make the moniker “The Dismal Science” an incredibly optimistic assessment.

Does anybody need economists? We need top-down analysis of economic activity in our complex world. We are not receiving it from those who claim to provide it. What shall we do?