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European Tribune - One (or two) years on - they have learnt nothing
All this points, unfortunately, to a bigger crisis soon.
The problem this time around was that there was no coherent alternative paradigm to take over from what has been called the "intellectual collapse of neoclassical economics". This, together with the "there is no alternative" conventional wisdom, means that, for all its failings, neoclassical economics will not be abandoned and the mental capture of the policymakers by the financiers will continue.

An coherent alternative needs to be formulated and in place in people's minds (even if pushed to the back as unrealistic) in order to have a chance to take over from NCE at the next crisis. This needs to be an arguably untried alternative - paradigms are hard to rescue from the ashes of "intellectual collapse" - which disqualifies straight Marxism or Keynesianism which had their own "intellectual collapse" with the fall of the Soviet bloc and the stagflation of the 1970's, respectively.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Mon Oct 5th, 2009 at 12:34:55 PM EST
Migeru:
This needs to be an arguably untried alternative -

Cue Chris Cook!

~Government budget deficits are not nearly as dangerous as the deficits we have created in vital and complex natural systems.~ Naomi Klein.

by melo (melometa4(at)gmail.com) on Mon Oct 5th, 2009 at 01:10:26 PM EST
[ Parent ]
Behave yourself, melo!

But it's not easy developing and proselytising a new paradigm if your livelihood depends on the old one. That is a risk and a sacrifice most cannot or will not make, usually because others depend on them.

I certainly didn't do what I did deliberately: I have never felt as though I have had a choice, really.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Mon Oct 5th, 2009 at 07:22:46 PM EST
[ Parent ]
maybe the reason no new approach to macro-economics is emerging is because there is no real need for one.

if laws are changed so to deny unaccountability and moral hazard to those who have proven to be irresponsible and greedy, then old models could continue to provide enough growth to preclude social chaos, provided the attitudes to distribution of wealth were profoundly re-schematised. it's the imbalance that makes it not fly right.

what has to stop is the macbethian trilogy of ambition, greed and disaster that characterises the present system.

the low info masses are a slumbering giant, and they don't even know how giant they are.

like gulliver tied down by thousands of threads!

one day, enough people will have enough information to shout down the wurlitzer, till then we watch the lies becoming ever more distorted, as the supercons effort to present a narrative that resembles anything plausible or even rational.

the whole game for them is how best to realise their fantasy of the good old days before people so easily shared information seen as seditious by People In Power. they try to squeeze today into yesterday's models, and it isn't working...

worst of all, it hurts so many so deeply as the PIP ply their no-trial-and-terror trial and error scams to remain in control.

you never know where the wave will break, right now it looks like the dairy farmers are getting pretty p'o'd.

there might just be a rerun of paris 68, but europe-wide, in a couple of years, at this rate of emplyment breakdown.

it just needs enough sparks, the tinder pile is sure dry enough.

personally i earnestly hope people find an unequivocally peaceful way to _protest, but the numbers have to be truly massive for that. my fear is that there'll be hotheads who precipitate things before there is enough groundswell to do it peacefully.

it reminds me of talking down a group of hostage takers to surrender, with the hostage in this case being the world economy. we've sent them in a tarp full of food, now we need some masterful psychology to make them see resistance is futile and only amplifies their demise.

microsoft's chief exec is on tv saying he doesn't expect recovery and we're going to be 'bumping along the bottom' for a 'significant amount of time, years...'

gee thanks!

~Government budget deficits are not nearly as dangerous as the deficits we have created in vital and complex natural systems.~ Naomi Klein.

by melo (melometa4(at)gmail.com) on Mon Oct 5th, 2009 at 01:48:49 PM EST
[ Parent ]
Today I asked my US history students (community college) if anyone had seen Michael Moore's new movie, and no one had.  I did my best to encourage them to see it.  We are studying the Gilded age and the populist movement of the 19th century, and I told them that Moore is making basically the same arguments these people were making more than 100 years ago.  I told them Moore is the same guy who made Bowling for Columbine and Sicko, which most of them had heard of or seen.  I hope a few of them will be motivated to scrape up the $10 to go see the movie soon.  Lumbering giant, for sure.  It seems to me that this mass of young twenty-somethings is not ready to challenge the status quo.  There is a lot of critical thinking and questioning just below the surface, most are working hard, and doing long hours at low pay for employers who just skirt the law, or don't, in their treatment of workers.  For them, it is just the way it is, and they all have bills to pay and classes to keep up with.  Questioning and challenging for them is just too much at this point.  The near economic meltdown of last fall is not something they are directly feeling; the unemployment just means it might be a little harder to find a minimum-wage job; and house prices and foreclosure, medical bills and bankruptcy are their parents problems.  My students are more worried about keeping their crappy cars running and maybe whether or not they or their friends will have to go back to Afghanistan soon.

That being said, I wonder if Michael Moore is Thomas Paine, and his movie the "Common Sense" of our day.  I wish he had gone into the history of unions more because I think that would be really inspirational.  Basically, the message of the movie is Corporations: who are these people and how did they manage to take over our government?

by jjellin on Mon Oct 5th, 2009 at 04:08:54 PM EST
[ Parent ]
jjellin:
I hope a few of them will be motivated to scrape up the $10 to go see the movie soon.

Or download it.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Tue Oct 6th, 2009 at 05:58:39 AM EST
[ Parent ]

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