August 27, 2015

Pygmy economics

Comment on graccibros and Ishi Crew on ‘Quick thoughts on the stock market and the economy’


(i) I think your perspective is wrong. The issue is not about fixing the Chinese stock market by kicking out some Flash Boys. That is Roubini pygmy economics. What is required is to find out what financial institutions China needs for the transition to a full-employment economic future in a stationary world economy. My hypothesis is that she is better off without a stock market.

(ii) I agree with you that in economics almost everything and the exact opposite has already been said sometime, somewhere, by somebody. There is an abundance of opinion and a dearth of knowledge. In other words, economics is a failed science.

“In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum)

The true theory is not to be found in the history of economic thought. Heterodoxy either develops a new paradigm or it goes down the opinion-drain like Walrasianism, Keynesianism, Marxianism, Austrianism, Ishiism and all the rest.

Egmont Kakarot-Handtke

Connects to 'The heterodox perspective becomes dominant' and 'Quick rethinking of the stock market'