The Great Simplification with Nate Hagens Steve Keen: "On the Origins of Energy Blindness”
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Feb 7, 2024 
Economist Steve Keen explores the origins of energy blindness in modern economic theory, discussing how the massive carbon surplus has been overlooked in describing wealth and productivity. The podcast also delves into the history of economics and the role of physiocrats, the flaws in neoclassical economics, and the neglect of energy in production. The speakers analyze the relationship between energy, technology, and human creativity, and criticize economists' approach to energy and climate change.
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Physiocrats and the Origin of Wealth
- Physiocrats, 18th-century French economists, believed wealth originated from land.
- They saw farmers as exploiting the "free gift of nature," which is energy from the sun.
Shift from Land to Labor
- Adam Smith shifted the focus from land to labor as the primary source of wealth.
- This change, influenced by the rise of industrialization, contributed to energy blindness.
Marx and the Labor Theory of Value
- Karl Marx, influenced by Smith, argued that labor creates value, leading to questions about profit distribution.
- This sparked debates about worker exploitation, prompting a shift towards neoclassical economics.