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Saturday, September 22, 2012

The Economics Fallacy


 David Suzuki explains the fallacy of conventional economics.

The following is a re-posting of a Facebook post by Robofraud Canada in which the point is made that much of economics is in no way a true science. Economists will admit that their models and theories are based on a hell of a lot of assumptions while essential factors to real life are ignored as non-quantifiable or irrelevant to the final equation. They don't use facts, they look for "indicators" upon which to base their fortune telling. Other than basics of supply and demand, that require no creative mathematical methods or accounting theories, economics is more astrology than astrophysics, filled with complex mathematical tricks, irrelevant data, subjective observations, and theories based on faulty assumptions. Neoliberals want to use it as the sole driving factor and guiding principle for entire nations. Neoconservatives want it to be the only choice. The same people who argue that the climate is too complex to accurately model and predict, and that global warming predictions are based on too many assumptions, worship free market economics as if it were as perfect as god, instead of no better than the local weather forecast. Economics tries to reduce reality to economic motivations and processes with no consideration of anything else but net gain. These modern witch-doctors are followed like saints spouting the word of god.  Why? For their masters, the corporations and the neoliberal 1%, the system is working perfectly.

‎"Economists say, if you clearcut the forests and put the profit in the bank, you could make 6 or 7 percent.But if you cut down the forests and put it into Malaysia or Papua New Guinea, you could make 30 or 40 percent.

So, who cares whether you keep the forest, cut it down [and] put the profit elsewhere! When those forests are gone, put it in fish; when the fish are gone, put it in computers. Money has no value but money now grows faster than the real world.

Economics is so fundamentally disconnected from the real world, it is destructive. If you take an introductory course in economics, the professor—in the first lecture—will show a slide of the economy, and it looks very impressive. They try and impress you, because they know damn well that economics is not a science, but they're trying to fool us into thinking that it's a real science; it's not.

Economics is just a set of values, with mathematical equations to pretend to be a science. But, if you ask the economist : in that equation, where do you put the ozone layer? Where do you put the deep, underground aquifers? Where do you put top soil or biodiversity?"

The answer is those are externalities. Well, then you might as well be on Mars! Economic theory is not based[on anything like the real world.

It's life, the web of life, that filters water, it's microorganisms in the soil that create the soil we can grow our food in. Insects fertilize all of the flowering plants…nature performs all kinds of services…these services are vital to the health of the planet. Economists call these externalities; that's NUTS."