Thursday, June 27, 2013

George Soros: Why We Need To Rethink Economics

In this short interview, Institute for New Economic Thinking co-founder George Soros tackles the question at the heart of the Institute’s mission: What’s wrong with economics and what can we do to change it?
“Economic theory needs to be rethought from the ground-up,” Soros says. He specifically criticizes economists who are trying to produce theories that behave like laws in Newtonian physics, which Soros has long believed is impossible.
To change this, Soros says economics needs to reexamine its own behavior. “You need a new approach with different methods and also different criteria of what is acceptable,” he says. And he says that economic thinking needs to begin addressing real-world policy questions rather than simply creating more mathematical equations.
INET
George Soros: Why We Need To Rethink Economics

9 comments:

Dan Kervick said...

Economics needs to preconceive itself as a practical science - like medicine or engineering - not a pure theoretical science. The training needs incorporate practical internships and apprenticeships as well.

F. Beard said...

Yeah. How about an Equity based economy rather than a debt-based one?

Isn't the point of economics to create aggregate Equity?

Something does not pass the smell test and it isn't just Hamilton's corpse.

y said...
This comment has been removed by the author.
y said...

"like medicine or engineering"

Imagine what they would be like if they approached their subject in the same way that so-called 'economists' do.

Matt Franko said...

y,

Its like we're riding in the back seat of the Jamaican boblsed with these people...

Dan Kervick said...

Imagine what they would be like if they approached their subject in the same way that so-called 'economists' do.

If someone came in with a broken leg they would have have a two-year discussion about models of calcium flow through the human body.

F. Beard said...

Let's face it. Economics is a mess because the money system is inherently unjust and inherently unstable.

Calculus was invented in the 17th century and double-entry bookkeeping before then. If the current money system could be made to work properly then the problems with it would have been solved centuries ago.

But keep trying, huh?

y said...

and they would conclude that the best thing to do is either (a) inject lots of calcium into the patient's skull, or (b) do nothing and let "the magic of biology" take care of itself.

xan said...

Everyone knows that broken bones release bad blood into the body that must be drained. If it is not drained fast enough the patient gets weak and more blood must be drained. But if it is drained too fast the patient may also become weak, and more of the bad blood must be drained. Occasionally a patient can even lose his life from the broken bone. There is little a doctor can do for this, as it is the will of the market. The medical term form this treatment is austerity. Do not forget to collect your fees before the patient dies.