December 31, 2014

No choice

Comment on 'Mainstream macroeconomics distorts our understanding of economic reality'

There is almost universal consent that orthodox economics is a failure. This leaves anyone with the option to ignore or to replace it. To filibuster about it is not a real option.

It is pretty obvious that the failure of theoretical economics is neither the only nor the worst problem of humankind. Under the broader perspective, the problem whether the earth is blown up by human wickedness/stupidity, a natural cataclysm, or by an unknown extraterrestrial entity is the ultimate problem.

However, being economists, we have to admit that -- at the moment at least -- we cannot solve the existential problem of humanity. As a matter of fact, we have not yet answered the question of how the economy works. And this, certainly, was not due to a lack of good will. Science is a trial and error process and so far the trials were not successful.

Since Orthodoxy is a failure and Heterodoxy has not yet come up with a better paradigm the actual option is either to establish a more balanced pluralism of false theories or to promote the required paradigm shift.

By definition, the one and only thing economists owe the world and humankind is the true economic theory.

Egmont Kakarot-Handtke