Keynesian Economic Collapse
Nearly 80 years of Keynesian fallacy has brought the global economy to the edge of collapse. Governments everywhere love Keynesian economics which axiomatically requires governments to spend to...
View ArticleWhat is a Paradigm?
What is a paradigm? Why is it so important to understand what it is? Why has economics changed so little even after its obvious failure in the recent global economic crisis? Durability of Paradigm...
View ArticleWhat is Science?
What is science? Why is economics not science? Why is it important for economics to be a science? Claims to be Science The claim that economics is a science is often based on erroneous definitions of...
View ArticleWhat is Economics?
What is economics? Why is it important to define clearly what is economics? Economics as Phenomenon Historically, economics originated from the consideration by philosophers of human activities as...
View ArticleMethodology
The reason for discussing methodology is to explain why we do things differently and to warn readers not to expect to see on this blog, standard methods for investigating economics. Different methods...
View ArticleFinancial System Collapse
The global financial crisis (GFC) had brought the global financial system (GFS) close to collapse. Extraordinary measures exhausting much of the available resources were brought to bear to prevent the...
View ArticleSaving=Investment Fallacy
“Saving=Investment” is axiomatic in macroeconomics as it is taught in basic textbooks, found in advanced research and assumed in national statistics. Yet it is a fallacy which can be traced to Keynes...
View ArticleOptimal Aggregate Consumption
Over-consumption is not in the Keynesian lexicon. More consumption is assumed always to be better for economic growth (with few exceptions) in a Keynesian prescription of perpetual demand-stimulation...
View ArticleFacts and Economic Science
It is clear that economics is in chaos when there are significant disagreements about basic facts of economics. There is an abundance of statistical data presented by the media, but there are few...
View ArticlePolicy of Debt and Destruction
For several decades, the historical data show that the monetary policy of central banks has been to use debt to stimulate the global economy, constrained only by the possible emergence of high...
View ArticleKeynesian Fallacy and Collapse
One of the first posts of this blog describes the potential for a Keynesian economic collapse due to persistent policy application, over decades, of the Keynesian fallacy. The fallacy originated from...
View ArticleCapitalism and Economic Growth
The global financial crisis (GFC) has been blamed on the failure of capitalism, with the 2011 Occupy protests declaring, “capitalism isn’t working” (Hussey, 2014). What is capitalism which has failed?...
View ArticlePluralism of Cognitive Dissonance
Pluralism is the enemy of science. At any given time, science deals only with a single most correct theory in any particular domain, not with multiple incorrect theories. There is a huge difference...
View ArticleCreeping American Socialism
The previous post discussed the influence of pluralism in economic policy. As an historical summary of the cognitive dissonance, it suffices to observe the policy circus: the free-market capitalism in...
View ArticleCorporate Socialism and Hollowing of America
Most people understand and assume that government income redistribution, where higher incomes are taxed and transferred to those with lower incomes, is a way of achieving greater income equality. But...
View ArticleFiscal Stimulus of Consumption
The global financial crisis (GFC) has been in temporary recess since its break in 2008, but has recently metastasized into a more dangerous form. Extreme real-time experiments are being forced on many...
View ArticleKeynesian Black Holes
The previous post suggests that the US economy may be in a Keynesian black hole. Many other countries around the world are also likely to be in Keynesian black holes. The danger is that the larger...
View ArticleHow Much Capitalism?
How much capitalism is optimal for economic growth and stability? Or, equivalently, the question is how much socialism or government? Until now, no one appears to have posed this question, as most...
View ArticleHelicopter Money in Operation
The great inventive minds of modern economics (GIMME) have been busy talking about helicopter money as an option they could try in future as another unconventional monetary policy (UMP) to avoid...
View ArticleScientific Economics: Review of Progress
It has been three years since this blog was launched with an inaugural post in August 2013. What has been achieved by way of progress in building a scientific economic paradigm? Considering the scope...
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