Thursday, June 7, 2007

The Problem with Neoclassical Economics

Dating back to the days of Adam Smith, economists used to incorporate ethics, literature and philosophy into their analysis. But these days, Smith’s intellectual offspring have the idea that economics is a physical rather than a social science that has nothing to learn from other disciplines. They cling to the notion that their models are not tainted by the subjectivity that confuses other social sciences. Chicago School affiliate George Stigler once scornfully remarked that “without mathematics, we’d be reduced to the caviling of sociologists and the like.” The 1969 introduction of the Nobel prize in economics – which Stigler won in 1982 – seems to have fueled these delusions of grandeur. More...

Courtesy of Adbusters magazine

4 comments:

Anonymous said...

Rather than post piece after piece on your disapproval of neoblah blah blah ideas how about posting your own personal suggestions on how Zimbabwe might get out of it's current predicament. What can Zimbabwe do regardless of the actions of other nations? We can go back and forth about the poverty neoliberalism has caused and it's inherent unfairness and I can go on to point out that under more socialist regimes, citizens are rarely empowered to be truly independant of governmental control. How many purely socialist countries in the world have prospered? In fact I argue that once China embraced a more capitalist view on their economy things began to improve. Just as neoliberal ideals may discount certain aspects of human nature so does your more socialist agenda. Some people strive to be wealthy, some people want to feel like the effort they put out will yield rewards comensurate with that effort. Your ideals seem to cater to only those who cannot do for themselves, it assumes we are all poor and want a handout from the government. I think there are all types of people and catering to one or the other is probably a mistake.

I may not support every aspect of neoliberal economic theory but I do understand that it does include some sound economic theory that should be followed in order for a country to succeed. Timing and implementation are a bigger problem than anything. In any endeavour there will be a period where things look dim but you have to remember the eventual goal.

With that said how about ceasing your constant put downs and propose some of your OWN ideas on what Zimbabweans can do for themselves? Or is your only solution to site the work of others while crying and wining about how the west is putting sanctions on us? When will you tire of playing the victim? You seem to have this "poor us blah blah blah" attitude that pervades your every thought.

Kuthula said...

In all honesty, I have invested too much time in you. I have addressed many of tthe issues you raise and yet you still trouble me. The problem I have a difficulty with investing more time is that eventually you are a liar as evidenced by our discussion which any reader can follow under the headlined topic "Simple reason missing in Zimbabwe debates". For instance, I never talked about socialism or forsaking capitalism. I told you that in Zimbabwe we need to have a SME driven economy with a sizeable number of foreign investors. That it is the challenge of IMF and other Western countries opposed to Zimbabwe to appreciate our model. I have a feeling that you do not read the entirety of any comment. If you did, you would know that I answered many of your questions. But the reality is that you are trying to save your face from the humiliation you suffered in our previous debate.
I really value engaging people but its something else to go back to the same thing over and over again so that Dave can try to save his face.

Anonymous said...

In other words you have no solutions to anything and can only complain. I didn't really expect anmything more out of you.

It's been fun.

By the way in order to get " a sizeable number of foreign investors" you will have to embrace some neoliberal ideas including privitization. You really have no clue.

Signing out.

Kuthula said...

Yes now I have no more clues. It was good talking to you.