Straw man alert

So, the new video explaining economics.

If economics is about the allocation of scarce resources then we have t know what is scarce. And my point is a simple one. Economics has treated money and financial capital as scarce. But it isn’t the real constraint in the economy. The planet is the real scarce resource – and so are we.

Economics has asked the wrong questions I hope to ask better ones.

Economics does not assume that money is scarce. It assumes that the things that can be deployed by the use of money are scarce. Therefore money is not the real constraint, real resources are.

Among which we include the planet. At least, those parts of it which are scarce – say, refined metals, or even economic ore bodies. Which is why they have a price.

So his explanations of economics are starting off with a straw man. Which doesn’t bode well for the future of the series.

6 thoughts on “Straw man alert”

  1. Bloke in North Dorset

    OT but relevant

    In an earlier thread BraveFart asked about a review of The Deficit Myth by Stephanie Kelton.

    The Grumpy Economist has now published his Wall Street Journal review on his blog and its fair to say he wasn’t impressed, concluding:

    Writing the book to “defend” an immense left-wing spending agenda destroys her argument. If you could only feel her singular empathy for the downtrodden, if you could, as she does, view the federal budget as a “moral document,” if you could just close your eyes and need it to be true as much as she does, your “Copernican moment” will arrive, and logic and evidence will no longer trouble you.

    That effect is compounded by her refusal to abide by the conventional norms of economic and public-policy discourse. She cites no articles in major peer-reviewed journals, monographs with explicit models and evidence, or any of the other trappings of economic discourse. The rest of us read and compare ideas. Ms. Kelton does not grapple with the vast and deep economic thinking since the 1940s on money, inflation, debts, stimulus and slack measurement. Each item on Ms. Kelton’s well-worn spending wish list has raised many obvious objections. She mentions none.

    Skeptics have called it “magical monetary theory.” They’re right.

    I’m not sure the Three Professors will agree with him 🙂

  2. Does he cite any economist who has declared that money is a scarce resource? I don’t even think that Newmy is that dumb

  3. Its Murphonomics, so steaming ordure.


    Thanks for alerting me to that. Wow, no punches pulled! If you changed the gender to male in the review, it could have been written about the Great Potato

  4. Murphy is a statist. He loathes freedom.

    ‘Economics has asked the wrong questions I hope to ask better ones.’

    He has only one question he repeats over and over, “How can we get government into this?”

  5. ‘Value as money’ is a useful way of keeping the score, especially for economists; the ‘value of money’ is that of a token that can be held in place of some other resource.

  6. Someone must have told him that YooToobers make lots of money.

    Problem is, he only has a couple of hundred subs.

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