April 10, 2015

MIT dilettantes II

Comment on ‘Bernanke-Summers Debate II: Savings glut, investment shortfall, or Monty Python?’


Steve Keen is right and there is almost universal consensus: MIT economics is — let there be no ambiguity — scientific crap (2014). The decisive question is where to proceed from this consensus. To repeat ad nauseam that Orthodoxy is a failure is not sufficient.

“The moral of the story is simply this: it takes a new theory, and not just the destructive exposure of assumptions or the collection of new facts, to beat an old theory.” (Blaug, 1998, p. 703)

Let Bernanke, Summers and the rest of beaten Orthodoxy twitter, leave MIT economics behind, proceed with the paradigm shift.

Egmont Kakarot-Handtke

Blaug, M. (1998). Economic Theory in Retrospect. Cambridge: Cambridge University Press, 5th edition.
Kakarot-Handtke, E. (2014). The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment. SSRN Working Paper Series, 2489792: 1–13. URL