[lbo-talk] Austerity Economics: Tied Up in Knots?

c b cb31450 at gmail.com
Tue May 8 11:55:46 PDT 2012


michael perelman

A core element of neoclassical economics was to emphasize transactions rather than work, workers, or working conditions. The idea was that the justification of the system was the utility enjoyed by consumers. All considerations of work, workers or working conditions were to be swept aside. Production is relevant only insofar as serves to satisfy consumer needs.

Macroeconomics was expected to depend upon this neoclassical micro foundation. Nonetheless, macroeconomics centered on demand is rejected by all good austerians. Instead, the current fad is to emphasize supply-side economics. Trading the social safety net encourages hard work. Tax cuts ensure more employment.

Over and above the self-destructive consequences of austerity, the recent wave of austerian nonsense has the unintended consequence of contradicting the intellectual foundation of neoliberal economics.

^^^^^ CB: Is that neo-liberal or neo-classical in the last sentence ?

Austerian is not the same as austrian, correct ?



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