Some Recent Failures of Neoclassical Economics

Have you noticed that practically all these neoclassical types do is lie? There’s a reason for that. Their theory is good for the rich and the upper middle class only, and it’s crap for everyone else. They can’t come out and say that, so they have to lie to the 8 This is similar to the modus operandi of conservatism. As conservatism is always and everywhere a philosophy of the plutocrats that benefits them and some upper middle class folks and hurts everyone else, they can’t very well be honest about the nature of their class war project. This is why conservatives, everywhere and Earth and all down through the past, have always lied. Conservatism is dishonest because it must be. A philosophy that benefits the top 2 Analyses of neoliberalism in the past few decades around the world showed that it tended to benefit about the top 2 Even major ruling class organs like Time Magazine admitted that decades of neoliberalism in recent years in Latin America had largely failed. Neoclassical economics killed 15 million people in Russia alone in the 1990’s. Neoclassical economics has failed to lift people out of poverty. Peru and India have implemented neoliberal policies in recent years. After years of high growth in Peru, the poverty rate remained flat at 5 The neoclassicals caused the recent financial crisis that took out the US economy and nearly took down the world’s economy with it. Neoclassical economics destroyed Latvia, leading to a 2 Hoover’s neoclassical economics only deepened and worsened the Great Depression in the US. Neoclassical economics caused a depression in Ireland with 1 The top neoclassical economists, including Hayek and Friedman, went down to Chile and advised Pinochet on how to run his economy. They implemented the most radical experiment in neoclassical economics that has ever been tried. The result was one of the worst economic depressions in modern history. However, at the end of Pinochet’s term, workers had lost 1/3 of their wages, and there was a massive wealth transfer from the bottom 2/3 to the top 1/3. Hayek and Friedman both said that neoclassical economics was so bad for workers and ordinary people that the only way to put it in was via a dictatorship. This is why both Hayek and Friedman were huge cheerleaders for the murderous Pinochet. The countries that got creamed worst in the financial crisis were those that had followed neoclassical theories in their financial system. Iceland underwent possibly one of the most radical experiments in neoclassical restructuring of its financial sector. The result was that when error3

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0 thoughts on “Some Recent Failures of Neoclassical Economics”

  1. First.. there is no pure neoclassical economical state in the world (as there is no pure communist state..)… the current Hong Kong would come closest… as for the US property bubble… it was US government directed policy and willful neglect of fraud which help create the property bubble….
    As the Soviet Union and Latvia.. why did they shift away from command economies in the first place…?

  2. Neoclassical economics only works in theory. That’s all it’s good for- teaching basic economic principles. After that, you’re best off kicking it to the curb.
    Economists do it with models? NO! Real economists do it with empirical evidence. EVIDENCE is what’s needed. I’m TIRED of these silly models and abstract nonsense like “ceteris paribus” or Pareto efficiency. THEY’RE NOT REALISTIC!
    Who is the IDIOT who came up with an Edgeworth Box in the first place??

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