Marx, Capitalism, and Neoclassical Economics | Steve Keen | Escaped Sapiens #65
The Escaped Sapiens Podcast
Economists' Failure to Predict Crises
- Economists don't manage the economy well and failed to foresee the 2007 financial crisis.
- They predicted a great 2008, as exemplified by the OECD's optimistic outlook, titled 'achieving further rebalancing'.
- Steve Keen predicted the crisis by focusing on the rapidly rising level of private debt, an aspect often ignored by mainstream economists.
- Keen argues that their models are backward-looking, fitting past data rather than understanding capitalism's turning points.
- Economists' flawed understanding persists because capitalism has its own momentum.
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