The “Limits to Growth Study” of 1972 was deeply controversial and criticised by many economists. Over 40 years later, it seems remarkably prophetic and on track in its predictions. The crucial concept of Energy Return on Energy Invested is explained … Continued
Some of the ridiculous assumptions on which much of mainstream economics is constructed are explored in this chapter – for example the methodology that stresses individual decision- making, the assumption that decision-makers have the information that they need, the assumption … Continued
What Schumpeter called the “Ricardian Vice” was a mode of reasoning in which the required conclusions are buried in the assumptions of an argument. The free trade argument of David Ricardo are described in these terms and unpicked. The ideas … Continued
Co-operatives have been described as freshwater fish in a saltwater environment. In the 1930s, the co-operative sector in many countries was very powerful but it was destroyed by fascist and communist regimes. What was it that the authoritarians found so … Continued
In the religion of economics, the entrepreneur is a hero engaged in a narrative of destructive creation. Entrepreneurs are tragically noble figures on a treadmill of competition – but who is really making the sacrifices? Often it is the entrepreneur’s … Continued
A major issue in climate economics is whether it is possible to halt the growth in carbon emissions and to achieve, instead, a rapid reduction. It concludes that carbon emissions will never fall at a sufficient rate in a growth … Continued
The ideas of Henry George are still very relevant for economic theory. A site value tax would help to stabilise property market cycles and promote greater spatial efficiency. However, while helpful, market mechanisms like a site value tax will not, … Continued
This chapter describes the “marginal revolution” of neoclassical economics. The idea of marginal productivity and payments to “factors of production” was developed for ideological reasons to counter thinkers like Marx and George. The theoretical framework learned by generations of students … Continued
Henry George and Karl Marx developed alternative radical theories out of the ideas of Adam Smith and David Ricardo. The classical economists did not mince their words. As Mason Gaffney puts it: … classical political economy was a remarkable phenomenon. … Continued
What economists call “externalities” are not unusual or a special case, they are ubiquitous. They are rooted in private property and the relationships of market society. The way in which non market societies protect bio-diversity through totem arrangements is described.