Posts Tagged ‘economics’

There often isn’t agreement about all the sources, causes, and processes of any social problem. This diversity of perspectives leads to disagreement as to what are the best solutions and how to achieve them. I think it’s best to deal with this complexity (if only to point out to students that it is there) from the start. The dilemma is, of course, balancing simplicity with reality in the course, but at least it teaches students that there are multiple points of view to almost everything, and that rational inquiry should be based on a dialectic argument and not submission to authority.

For example, many mainstream economists argue away unequal pay for women with the theory of “compensating variations” which states that women are, on the average, more expensive to private employers because of family responsibilities and reproduction, and thus markets dictate they get paid less. Somewhat more enlightened (but not radical) economists point out that this is a “market failure” since these women DO provide lots of value to society as a whole even if perhaps not to their private employers directly. Finally radicals see this as another facet of exploitation in capitalist patriarchal societies. Each of these approaches has different assumptions, different values, and consequently different proposed solutions…

So I’m suggesting to tackle the diversity of knowledge from the start and throughout… not easy :)

What Is Economics Good For? NYT

Posted: 2013/09/17 by Punkonomics (@dearbalak) in Links/Articles/Video
Tags: , , , ,

What Is Economics Good For? – NYTimes.com.

I wanted to chime in very briefly with a little rant about the lessons learned from the most recent crisis:
(1) A good number of economists from the left and the right DID predict this would happen and have also discussed in details the chronic problems the US economy has developed over the past few decades. This large minority of economists are often referred to as heterodox (as opposed to the orthodox/mainstream) views heard on the media and in traditional textbooks). So the notion that this crisis was a “surprise” or that “nobody could have predicted” it is BS spewed by leading mainstream economists who are defending their intellectually bankrupt views that have brought them their success and fortunes.
(2) Mainstream economics seems to have learned shockingly little from the crisis even though it confirmed many of the theories of the heterodox/radical economists while decisively falsifying most of the mainstream theories. In this sense the economics profession has shown itself to be thoroughly unscientific (from a methodological perspective) and the majority of its celebrated leaders to be little more than idiot-savants justifying the practices of the elites who feed them.
This is truly a low point in the history of economic thought but let’s not forget the minority of economists who are screaming blue murder for decades and have taken very significant hits to their careers by refusing to be seduced by the simplistic views and generous rewards of the mainstream.