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Makes planning tough then

Richard Murphy says:
October 7 2022 at 10:09 am
I have never believed in equilibrium

I do not think it ever achievable because given the nature of the human being we can always do better

Economics ignored that human capacity

If there is no stable state to be reached then planning becomes very difficult indeed.

Possibly this is why neoliberals urge the use of markets – the way of dealing with change and the absence of an equlibrium. But that would require knowing both some economics and also what neoliberals belive.

7 thoughts on “Makes planning tough then”

  1. But I thought eco-mentalism decrees that the planet has a climate that would be in perfect equilibrium if it were not for the evil humans that have destroyed it with their selfish CO2 emitting?

  2. One day he says that there is an inevitable limit to what humans can do – thus economics is wrong and planning for a steady-state is essential.

    The next day he says there’s no limit – thus economics is wrong and planning is essential.

    At no point does he discuss what tools planners are to use if not economics.

  3. Equilibrium just means that economic forces are balanced; for example, supply & demand match through appropriately determined (market) prices. But prices change all the time as the sellers improve their products and buyers improve their consumption profiles. That the point of equilibrium changes over time, as reflected by price changes, does not mean that the economic system is not in balance at all times. The whole “seek positive NPV investment opportunities” is fundamentally based on business managers trying always to do better to change the point of equilibrium to their own & their shareholders advantage – is that not economics?

  4. He’s insane, foaming, dribbling insane.

    Jane says:
    October 7 2022 at 9:02 am
    To call anyone who votes Tory a “fascist” and anyone who voted for Brexit a “racist” says everything about your own intolerance to democracy

    Richard Murphy says:
    October 7 2022 at 10:04 am
    No, it does not. It says a great deal about my intolerance for fascists and racists whose goal it is to end democracy, which goal you obviously support

    You know Goebbels said accuse your opponent of that which you do? You just did it

  5. So prices are capricious since OPEC and Putin can throttle energy supply on a whim, but why should the poor pay for arbitrary inflation when the central bank can just index to keep real purchasing power stable no matter how fast or how high nominal prices may rise?

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