The problem, Mike, is that you haven't been exposed to good economic theory.

I recollect an economic database declaring proudly that it had 90,000 papers
available.

Yet, modern economists don't know why, even in the richest countries,
poverty is ever present.

You'll notice how modern economists concentrate almost exclusively on the
financial antics of our economy, apparently forgetting that the economy was
going over the precipice well before the financial skullduggery became
exposed.

For many years I've pointed out that not only do the neo-classicals not know
why there was a crash -- they didn't even know why we had a boom. I remember
Samuelson's remark that any able graduate student if asked could come up
with dozens of reasons for a depression.

Without doubt, the neo-classicals have hundreds and probably thousands of
definitive theories about the mess we are in, many of them contradictory,
but this is something that happens when basic and provable concepts are
rejected whimsically in favor of more complicated ego-massaging
brilliancies.

Harry

-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Mike Spencer
Sent: Thursday, October 28, 2010 11:13 AM
To: [email protected]
Subject: [Futurework] Re: Back cover blurb


Harry wrote:

> Ray,
>
> Perhaps you can explain to me why my "land theories" have little 
> connection to reality.

As far as I can see, all economic theories have at best a tenuous connection
to reality.  Some may be tautological, some share the bizarre qualities of
Ptolemaic epicycles, some have more exceptions and patches than a
creationism that tries to accomodate fossils, speciation and the rest of
scientific observables. But they all seem to happily sacrifice connection to
reality in the pursuit of theoretical elegance.  Economic theorists suffer
from Physics Envy.

Land?  Everybody needs a place to stand.  But we can (or could, when
Brunner's novel was written) all "stand on Zanzibar".  For the present,
there's an insuperable requirement for soil to support basic food
requirements. But you're not thinking of elementary physics or biological
energy budgets.

In general, any economic theory is about human behavior, collective human
behavior in particular.  But Bernays notwithstanding, people act
individually.  As soon as there is an approximately true generalization
about collective human behavior, there will be people who try to profit from
making themselves exceptions to the generalization.  The only way that such
economic theories, including "land theories", can be made true is through
coercion or manipulation.


Of course, "all generalizations are false, including this one".  Ho hum.

- Mike

-- 
Michael Spencer                  Nova Scotia, Canada       .~. 
                                                           /V\ 
[email protected]                                     /( )\
http://home.tallships.ca/mspencer/                        ^^-^^
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