ProfSteveKeen | Energy Ignored: A Fatal Flaw. @ProfSteveKeen | Uploaded August 2024 | Updated October 2024, 7 hours ago.
Mainstream economics is fundamentally flawed.
It's like trying to drive a car without knowing how an engine works.
Ignoring the role of energy in production is a critical oversight.
Imagine a chef who believes cooking is just about mixing ingredients.
What happens when they forget to turn on the stove?
The meal remains raw, unappetizing, and ultimately inedible.
This is what mainstream economics does when it disregards energy.
It creates models that are disconnected from reality.
We need models that reflect the true nature of our economy.
Not fantasies built on assumptions that crumble under scrutiny.
Think of a house built on sand.
It may look good at first, but a storm will reveal its weaknesses.
The Global Financial Crisis was a storm that exposed these flaws.
Mainstream economists were caught off guard.
They were like sailors navigating without a compass.
When the winds shifted, they had no idea how to adjust their sails.
The result? A massive economic downturn that affected millions.
We need to acknowledge the importance of energy.
It's the lifeblood of our economy, just as water is to a plant.
Without it, growth is impossible.
Models must incorporate the realities of energy consumption and production.
Only then can we create a sustainable economic future.
Ignoring these truths is like ignoring the warning signs of a fire.
By the time you smell smoke, it may be too late.
We must act now to rebuild economics from the ground up.
Let's create a framework that embraces complexity and reality.
Only then can we hope to navigate the challenges ahead.
Mainstream economics is fundamentally flawed.
It's like trying to drive a car without knowing how an engine works.
Ignoring the role of energy in production is a critical oversight.
Imagine a chef who believes cooking is just about mixing ingredients.
What happens when they forget to turn on the stove?
The meal remains raw, unappetizing, and ultimately inedible.
This is what mainstream economics does when it disregards energy.
It creates models that are disconnected from reality.
We need models that reflect the true nature of our economy.
Not fantasies built on assumptions that crumble under scrutiny.
Think of a house built on sand.
It may look good at first, but a storm will reveal its weaknesses.
The Global Financial Crisis was a storm that exposed these flaws.
Mainstream economists were caught off guard.
They were like sailors navigating without a compass.
When the winds shifted, they had no idea how to adjust their sails.
The result? A massive economic downturn that affected millions.
We need to acknowledge the importance of energy.
It's the lifeblood of our economy, just as water is to a plant.
Without it, growth is impossible.
Models must incorporate the realities of energy consumption and production.
Only then can we create a sustainable economic future.
Ignoring these truths is like ignoring the warning signs of a fire.
By the time you smell smoke, it may be too late.
We must act now to rebuild economics from the ground up.
Let's create a framework that embraces complexity and reality.
Only then can we hope to navigate the challenges ahead.
