Audible Anarchism Against Economics by David Graeber
Jan 16, 2021
Dive into a bold critique of traditional economics that's detached from today's realities. Explore the misconceptions about money creation and how banks shape our financial landscape. The discussion unpacks the flawed belief in market efficiency, revealing the dangers of ignoring economic bubbles. Learn how orthodox economists often fail to address economic crises and the disconnect between policy and people's lives. Finally, reimagine economics with fresh, interdisciplinary perspectives that include feminism and psychology, aiming for true societal change.
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Economics Outdated and Contradictory
- Mainstream economics is outdated, focusing on inflation and price stability based on disproven assumptions.
- Economic realities like falling unemployment not raising wages and money printing not causing inflation contradict textbook teachings.
Money Creation Realities
- Modern money is mostly created by private banks as credit, not by government minting currency.
- Central banks don't control the money supply but set interest rates for private bank lending.
Flaws in Quantitative Theory of Money
- The quantitative theory of money (QTM) wrongly assumes money supply alone controls prices and inflation.
- Inflation also depends on credit, speculation, wages, hoarding, and economic activity, making money supply effects unclear.
