Press "Enter" to skip to content

Debunking Economics: The Naked Emperor of the Social by Steve Keen

By Steve Keen

What is the rating card for economics initially of the recent millennium? whereas there are numerous diversified faculties of financial suggestion, it's the neo-classical college, with its alleged knowing and simplistic advocacy of the marketplace, that has turn into equated within the public brain with economics. This booklet exhibits that almost each point of traditional neo-classical economics' considering is intellectually unsound. Steve willing attracts on a powerful array of complicated severe considering. He constitutes a profound critique of the main techniques, theories, and methodologies of the mainstream self-discipline. willing increases grave doubts approximately economics' pretensions to validated clinical prestige and its reliability as a consultant to figuring out the genuine global of financial lifestyles and its policy-making.

Show description

Read or Download Debunking Economics: The Naked Emperor of the Social Sciences PDF

Best economic policy & development books

Debating the Global Financial Architecture

Debating the worldwide monetary structure opens up the modern debate surrounding the reform of the “global monetary structure. ” Economists and political scientists discover the commercial and technical content material of other international monetary regimes in addition to the political strategies in which such adjustments are negotiated.

Reconstructing Political Economy: The Great Divide in Economic Thought (Routledge Studies in Contemporary Political Economy)

This quantity bargains an unique viewpoint at the questions the nice economists have requested and appears at their importance for todays international. Written in a provocative and available kind, it examines how the various traditions of political economic system have conceptualised financial concerns, occasions and thought.

Four Horsemen. The Survival Manual

A deeper examine the problems raised via the acclaimed 4 Horsemen movie. because the worldwide economic system veers from main issue to disaster, humans have eventually had adequate. Billions are denied powerful entry to an economic climate that has been hijacked through vested pursuits. the folk who triggered the monetary drawback endure no loss, whereas the blameless majority see their dwelling criteria fall, or pay with their jobs.

Additional resources for Debunking Economics: The Naked Emperor of the Social Sciences

Sample text

But this is still less than the amount the additional output can be sold for, so the firm makes a profit out of this worker. 8, versus the cost of his wage of $1000. From this point on, any additional workers cost more to employ than the amount additional output they produce can be sold for. The firm should therefore employ 746 workers, and maximise its profit at $837,588. At this point, the marginal cost of production equals the marginal revenue from sale, and profit is maximised. 20. 3 units to output, for a marginal cost of $300.

Figure 7: The upward-sloping supply curve is derived by aggregating the marginal cost curves of numerous competitive firms Things don’t add up There is no doubt that the economic analysis of production has great superficial appeal – sufficient to explain much of the fealty which neoclassical economists swear to their vision of the market. But at a deeper level, the argument is fundamentally flawed – as Piero Sraffa first pointed out in 1926. The crux of Sraffa’s critique was that ‘the law of diminishing marginal returns’ will not apply in general in an industrial economy.

Since firms seek to maximise profit, and since this equality of (rising) marginal cost to marginal revenue gives you maximum profit, this determines the level of output. If constant returns are the norm, then the output function instead is a straight line through the origin, just like the total revenue line – though with a different slope. If (as a factory owner would hope) the slope of revenue is greater than the slope of the cost curve, then after a firm had met its fixed costs, it would make a profit from every unit sold: the more units it sold, the greater its profit would be.

Download PDF sample

Rated 4.66 of 5 – based on 25 votes