Orthodox economics treats labour as a good like any other subject to the laws of supply and demand. However this misses a crucial point that we are not dealing with commodities but rather people. With goods, demand is decided by consumers and supply by producers, whereas with labour, demand is decided by producers and supply by consumers. The entire system is turned on its head yet neo-classical economics claims the results will be the same.
Continue reading “Labour Market In The Real World”
The first thing everyone learns about economics is that the demand curve slopes down and the supply curve slopes upwards. This is described as obvious 2+2=4 and a fact that needs little proof. But recently I read Debunking Economics by Steve Keen which has turned my view of economics on its head. What if down is really up? What if everything taught in basic economics is wrong? What if the supply curve really slopes down? Continue reading “What If Up Is Really Down?”
I just thought I’d jot down a few words of thanks in gratitude to the fact that my blog has a total of 5,000 views. Continue reading “Thank You For Reading”
The first thing everyone learns about economics is about supply and demand specifically that the demand curve slopes downwards. This is presented as an obvious fact not needing any proof or discussion. Surely it is obvious that when prices rise, people buy less of a good? What if I told you this wasn’t the case? What if I told you economists have never been able to prove this actually happened in the real world? What if I told you that attempts to prove this actually did the opposite? What if I told you this had been discovered not by cranks or outsiders but rather by some of the main neo-classical theorist? What if I told you that the very foundations of economics weren’t true? Continue reading “What If The Market Demand Curve Doesn’t Slope Downwards?”
Have you ever thought old people have it too easy? That we’re wasting money on the sick? That money should redistributed from them to the super rich? Do you think Mitt Romney and other rich people should only pay 1% in tax? Do you believe we should take from the poor to give to the rich? Have you ever looked at Somalia and thought “that country does well without a government, we should defund ours”? Do you oppose laws that would require men and women to get equal pay for equal work? Do you like pretending to be a deficit hawk while really massively increasing the national debt? If so then you’ll love the Republican Vice Presidential candidate Paul Ryan. Continue reading “The Disastrous Mr Ryan”
There is an absurd theory that is so unrealistic that it is bizarre that anyone actually believes it. It views the stock market as a perfect place of logic and reason where nothing can go wrong. It ascribes stock traders with the powers and knowledge of a God. The fact that so many believed in it was a major cause of the recent asset bubble and financial crash. It is known as the Efficient Market Hypothesis.
To enter the world of the efficient market hypothesis you must leave your brain at the door. The theory assumes Continue reading “The Nonsense Of The Efficient Market Hypothesis”
Economics is divided into two sections, micro (focusing on individuals) and macro (focusing on the whole economy). However in universities the emphasis is heavily on micro to the extent that macro is often seen as simply micro on a larger scale. This is fundamentally wrong and ignores several points.
This focus ignores the fact that the best option for the individual is not always the best option for society as a whole. Continue reading “Macro Over Micro”