Austerity never ends: Orthodox Economists say wages are too high

Originally posted on Systemic Disorder:
No, you can’t really make this stuff up: Orthodox economists continue to tell us that the reason for ongoing economic stagnation is that wages and unemployment benefits are too high. Yes, that’s right. You haven’t suffered enough. Given that orthodox economics (or “neoclassical” or Chicago School, if you prefer alternate…

Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

By Yves Smith, The Financial Times has a generally good update on the state of the student debt bubble in the US. The article interesting not just for what it says but also for what goes unsaid. I’ll recap its main points with additional commentary. Note that many of the underlying issues will be familiar … More Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

New book: Crisis and the Failure of Economic Theory – The Responsibility of Economists for the Great Recession

By Giancarlo Bertocco. From Edward Elgar: Economists have rightly been criticized for not having foreseen the crisis that exploded in 2007–2008. As Giancarlo Bertocco eloquently argues, responsibility does indeed rest heavily on their shoulders. By developing a theory which excluded the possibility that a catastrophic crisis could ever happen, the economics profession has justified decisions … More New book: Crisis and the Failure of Economic Theory – The Responsibility of Economists for the Great Recession

New Book: Capitalism, Macroeconomics & Reality – Understanding Globalization, Financialization, Competition & Crisis

By James Crotty. From Edward Elgar: The essays comprising this collection analyze the deep flaws in the methodological foundation of mainstream economic theory, and explain how these flaws make mainstream economics more ideology than sound social science. James Crotty develops alternative theories built on realistic assumptions that can explain most of the disastrous economic and … More New Book: Capitalism, Macroeconomics & Reality – Understanding Globalization, Financialization, Competition & Crisis