Kategorie: general

Transatlantic pundits

During the twenties of the last century Irving Fisher was an acclaimed economist, comparable only to Paul Samuelson or Joseph Stiglitz in our time. Like virtually all economists of international repute, he tended to be wrong – indeed fundamentally so. As late as October 1929, he reassured investors with his prophecy that their money would be perfectly secure in Wall Street. A few days later the world was horrified by Black Friday. (1) Transatlantic pundits weiterlesen

Neoliberalism: Death of a pseudo-science

Ten logical objections and empirical arguments against persistently held dogmas in current economics

The principle of neoliberalism may be summarized in the following formula: The best way of guaranteeing a maximum performance for the economy is to keep government entirely out of its sphere. Its role should be confined to ensure the safety of personal property, which it does by using police and justice to this very purpose. Neoliberalism: Death of a pseudo-science weiterlesen

Economic decline and the doctrine of free trade

In my opinion the underlying reason for the impending disintegration of Europe is free trade policy as pushed by Germany (see my essay the „The ugly German – a specter is coming back“). I am, of course, aware that this view is diametrically opposed to accepted wisdom as to be found in economic textbooks. Therefore, I would like to emphasize at the outset that I do not consider those textbooks to be wrong – their theory is, indeed, hard to refute and at first glance it seems to be morally sound as well. In my new book, „From Crisis to Chaos“, I even speak of „neoliberal idealists“ – a wording which may sound rather queer to some ears (1). But if they are honest, neoliberals certainly strive for the best. Unfortunately, despite of all their endeavors, they always achieve the worst, and for this there is a very simple and basic reason: Their theory and the world we happen to live in, do not share much of a common ground. Economic decline and the doctrine of free trade weiterlesen

The ugly German – return of a ghost long thought to be dead

Does he really deserve these accusations, this hatred, these comparisons with and incantations of a Fourth Reich? In Greece, Germany has become the enemy Nr. 1, but if you listen to Italian talk shows you will be acquainted with similar insinuations. And the same holds true for Spain or Portugal. As for France there is not doubt that mistrust has grown steadily since Gerhard Schröder became German chancellor. The ugly German – return of a ghost long thought to be dead weiterlesen

Wealth without growth – Why the current economic system is incompatible with sustainable development

Since 1972 when the Club of Rome first invoked the dramatic consequences of unlimited growth, global awareness as to the relationship between growth and environmental destruction has been considerably sharpened. Growth is no longer considered a boon pure and simple. Ecological minded people start to make a difference between positive and harmful growth. Of course, growth itself is no evil. Wealth without growth – Why the current economic system is incompatible with sustainable development weiterlesen