In a keynote address to a conference on “Geopolitical Changes” at Kozminski University, Warsaw, on January 29, 2024, Professor James Galbraith called for economics to break with equilibrium dogma and re-found itself on the life principles that govern physics, biology and every existing mechanical and social system. Noting the distinguished presence of Professors Francis Fukuyama and E.S. Phelps, Galbraith called attention to the spectacular fallacies of “an end to history” and a “natural rate of unemployment,” arguing that these doctrines have helped blind our generation to the damage inflicted by rising resource costs and neoliberal policies of austerity and precarity, with dire consequences for households in wealthy societies, for their reproduction rates, and for the long-term viability of the species.
Transcript.
James K. Galbraith is an MMT-friendly economist.
Post-Neoliberalism—Pathways for Transformative Economics and PoliticsEntropy, the Theory of Value and the Future of Humanity
James K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government at the Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin
See also at Post-Neoliberlsm
Pavlina Tcherneva | Founding Director of OSUN-EDI, Professor of Economics at Bard College, Research Scholar at The Levy Economics Institute, and Senior Research Associate at the Center for Full Employment and Price Stability
2 comments:
“ The equilibrium, nevertheless, is supposed to exist in principle if not in practice. In real life, in modern science, there is no such thing. Evolutionary principles and the second law of thermodynamics preclude and exclude equilibrium. ”
What’s he talking about the thermo is an abstraction of a real system transition to equilibrium…
I think he’s getting mixed up by the Minsky “stability creates instability “ art degree figurative language (in this case paradox)…. There is no paradox in Science… it’s not taught…
Here:
https://chem.libretexts.org/Bookshelves/General_Chemistry/Concept_Development_Studies_in_Chemistry_(Hutchinson)/17%3A_Equilibrium_and_the_Second_Law_of_Thermodynamics
“ Imagine putting a drop of blue ink in a glass of water. At first, the blue dye in the ink is highly concentrated. Therefore, the molecules of the dye are closely congregated. Slowly but steadily, the dye begins to diffuse throughout the entire glass of water, so that eventually the water appears as a uniform blue color.”
The equilibrium (stability) was interrupted by the action of adding the blue dye which initiated a transition state (instability)…
In Sept 2008, the stability was interrupted by the Fed adding $100Bs of Reserve Assets to Depositories to create the instability…
It doesn’t “happen by itself!” Art Degree people…
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