September 25, 2016

Solow and the ludicrousness of economics

Comment on Lars Syll on ‘Solow on post-real Chicago economics’

Blog-Reference

From the fact that DSGE/RBC is a failed research program does not follow that the available alternatives can be taken more seriously.

Solow’s critique of Orthodoxy is spot on: “Since I find that fundamental framework ludicrous, I respond by treating it as ludicrous ― that is, by laughing at it ― so as not to fall into the trap of taking it seriously and passing on to matters of technique.” (See intro)

But Solow, too, has been moving into the wrong direction for the last three decades. He promoted the utterly silly and post-real concept of a production function, which is part and parcel of failed Orthodoxy’s fundamental framework, see ‘Putting the production function back on its feet’.

The ludicrousness of economics begins already with supply-demand-equilibrium and Solow has always been member of this broad church of scientific retards.

Egmont Kakarot-Handtke