Most Economists Fall Back Into Neoclassical Stupor … “If They Don’t Know Anything, Then Why Should We Listen To Them?”
by George Washington
When the economic crisis hit in 2008, economists started to admit that neoclassical economics was wrong.
Specifically, they started to admit that the assumption that the economy is inherently stable is false, and that their models were faulty and needed to be adjusted. See this, this, this, this, this, this, this, this, this, this, this, this, this and this.
But now that – on the surface (here’s what you may see if you scratch below the surface) – things seem to be improving, most economists are falling back in their neoclassical stupor.
For example, two PhD economists – Steve Keen and Dean Baker – recently attended the annual meeting of the American Economics Association. They are both exasperated that most economists have not learned anything at all from the crisis.
Keen reported on his surreal experience on the Max Keiser show, stressing that most economists still use defective models and believe the fairy tell of the inherent stability of the economy: