The MMT Podcast with Patricia Pino & Christian Reilly

#198 How Captured Economics Stole Our Future & What To Do About It with Katy Shields

Jun 6, 2025

In this engaging discussion, Katy Shields, a recovering mainstream economist and writer, dives into the pitfalls of captured economics, revealing how traditional growth metrics overshadow urgent climate and societal needs. She critiques the accountability of the economics field, likening it to a workaholic needing intervention. Katy advocates for prioritizing human well-being and environmental sustainability through an innovative shift to 'sufficiency' policies, emphasizing the necessity of interdisciplinary approaches to economics for a healthier future.

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ANECDOTE

Economics as Addictive Medicine

Economists resemble doctors prescribing performance drugs to a workaholic economy addicted to growth.
Mainstream economists ignore heterodox warnings about the unsustainable growth addiction.

INSIGHT

Limits to Growth: Early Warning

The Limits to Growth offers a holistic model linking economy, resources, and environment.
It warned 1970s exponential growth would hit planetary limits causing collapse this century.

INSIGHT

Green Growth Myth Debunked

Dematerialization or green growth is scientifically unsupported as material use remains essential.
We have already exceeded Earth's capacity, making continued GDP growth incompatible with sustainability.

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The 7 Deadly Innocent Frauds of Economic Policy

Warren Mosler

In '7 Deadly Innocent Frauds of Economic Policy,' Warren Mosler critiques mainstream economic thinking and presents a modern monetary theory (MMT) framework for understanding government finance. He argues that many commonly held beliefs about government deficits, debt, and taxation are based on flawed assumptions. Mosler contends that governments that issue their own currency are not constrained by revenue and can use fiscal policy to achieve full employment and price stability. The book provides a non-technical introduction to MMT and challenges readers to rethink their understanding of economics.

Groping in the dark

Donella Meadows

In 'Groping in the Dark,' Donella Meadows brings together a collection of essays that delve into the principles of systems thinking and their practical applications. Meadows highlights the importance of understanding complex systems and feedback loops in order to address pressing global issues. She emphasizes the limitations of traditional reductionist approaches and advocates for a more holistic and interdisciplinary perspective. The essays cover a wide range of topics, including environmental sustainability, economic development, and social justice.

Rethinking My Economics

Symposium

Angus Deaton

In 'Rethinking My Economics,' Angus Deaton reflects on his career as an economist and expresses concerns about the state of the discipline. He argues that economics has become too focused on mathematical models and abstract theories, and has lost touch with the real world. Deaton calls for a more critical and interdisciplinary approach to economic research, emphasizing the importance of understanding the social, political, and historical context in which economic phenomena occur. He also highlights the need for economists to be more aware of the ethical implications of their work.

The Deficit Myth

Modern Monetary Theory and the Birth of the People's Economy

Stephanie Kelton

In this book, Stephanie Kelton challenges conventional economic wisdom by arguing that government deficits are not inherently bad and can actually strengthen economies. She dispels six key myths about deficits, such as the idea that governments should budget like households, that deficits harm future generations, crowd out private investment, and undermine long-term growth. Kelton explains that in a fiat currency system, governments are not constrained by the same budgetary rules as households or businesses. Instead, the real constraints are the limits of real resources and the threat of inflation. The book advocates for using MMT to address critical social issues like poverty, inequality, unemployment, healthcare, and climate change by shifting the focus from narrow budgetary questions to broader economic and social benefits.

The Limits to Growth

Donella Meadows

Jorgan Randers

The book, commissioned by the Club of Rome, uses the World3 computer model to simulate the consequences of interactions between human systems and the Earth. It examines five basic factors: population increase, agricultural production, nonrenewable resource depletion, industrial output, and pollution generation. The authors conclude that if current growth trends continue, the Earth's resources will be depleted, leading to a sudden and uncontrollable decline in population and industrial capacity. However, the book also offers a message of hope, suggesting that forward-looking policy could prevent such outcomes if humanity acts promptly to reduce inefficiency and waste.

The road to serfdom

Friedrich Von Hayek

In this influential book, Hayek argues that the abandonment of individualism and classical liberalism leads to a loss of freedom, the creation of an oppressive society, and ultimately, the tyranny of a dictator. He challenges the view that fascism and Nazism are capitalist reactions against socialism, instead positing that these ideologies share common roots in central economic planning and the empowerment of the state over the individual. The book emphasizes the dangers of collectivism and the importance of maintaining a free market system to preserve human freedom and dignity.

Macroeconomics

James Burnham

The Big Myth

Co-écrit avec Erik Conway

Naomi Oreskes

Dans "The Big Myth", Naomi Oreskes et Erik Conway déconstruisent le "fondamentalisme du marché", une idéologie quasi-religieuse qui croit en la capacité du marché à résoudre tous les problèmes sociétaux. L'ouvrage explore les origines historiques de cette croyance et son impact sur les défis environnementaux. Les auteurs analysent comment cette idéologie a pris racine et s'est maintenue malgré les preuves de ses limites. Ils mettent en lumière les conséquences néfastes de cette vision du monde sur les politiques publiques et la gestion des crises. Le livre propose une analyse critique des fondements de cette idéologie et appelle à une réflexion sur les alternatives possibles.