Ron Toland
About Canadian Adventures Keeping Score Archive Photos Replies Also on Micro.blog
  • Seven Bad Ideas by Jeff Madrick

    Comprehensive. Explains 7 of the biggest ideas underlying the dominant economic model of the world, then demolishes them. One by one, each is shown to be based on false assumptions and a complete lack of evidence.

    Ties everything together by showing how policy shaped by these ideas has damaged the world economy.

    Three of the many things I learned:

    • The modern concept of using defense contracts to spur industrial innovation was invented in the US, in the 1800s.
    • For Adam Smith, prosperity came from increased productivity (usually from a better division of labor), not from the Invisible Hand, which was a guide to where to invest, not the engine of growth itself.
    • Multiple Acts of Congress (notably the Humphrey-Hawkins Act of 1978) direct the Federal Reserve system to pursue policies of full employment and low inflation. For the past thirty years, the employment mandate has been ignored.
    → 6:01 AM, Sep 19
  • RSS
  • JSON Feed
  • Surprise me!