Author: Wayne Price
PDF file size: 491 KB
The world is facing upsetting upheavals, with aspects which are political, military, ecological, cultural, and even spiritual. Clearly this includes a deep economic crisis, overlapping with all other problems. We need to understand the nature of the economic crisis if we are to deal with it.
Of the theories about the economy, the two main schools are bourgeois, in the sense that they advocate capitalism. Both the conservative, monetarist, unrestricted-free-market school and the liberal/social democratic Keynesian school exist to justify capitalism and to advise the government how to manage the capitalist economy….
“The transcripts of the 2006 meetings [of the governors of the Federal Reserve Board and the presidents of the 19 regional banks]… clearly show some of the nation’s pre-eminent economic minds did not fully understand the basic mechanics of the economy that they were charged with sheparding. The problem was not a lack of information; it was a lack of comprehension, born in part of their deep confidence in economic forecasting models that turned out to be broken.”
NY Times (January 13, 2012); p. A3.
This essay can also be downloaded as a PDF with flowing text here