Saturday, September 24, 2016

Steve Keen on Realism in Economics

Steve Keen on the recent outbreak of criticism of neoclassical economics from actual neoclassical economists:

Friday, September 23, 2016

Paul Romer’s Plan For Sweden: Are You Kidding Me?!

Paul Romer, recently appointed Chief Economist at the World Bank, has a stunning idea for Sweden described here. See the original article here.

According to Romer, Sweden should just allow a *completely independent* new state within Sweden, free from Swedish law where millions of migrants can live under their own laws without even being Swedish citizens. In other words, let’s just create a massive No Go Zone right in the middle of Sweden! Because these have worked so well in the rest of the Europe, haven’t they? Particularly in Sweden:

And, just when people thought Paul Romer was freeing himself from neoclassical economics, he has a genius plan to stimulate economic growth: within this No Go Zone, the migrants can be freed from minimum wage laws and have longer working hours, because, you know, wage and price flexibility leads to full employment, don’t you know!

Unfortunately for the neoclassical madmen, wage and price flexibility does not lead to full employment equilibrium, and a massive Third World enclave right in the heart of Europe is more likely to accelerate the massive catastrophe unfolding.

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