By George Mattathil – Joining the chorus on the failure of economics theories (partial list below)…
The primary driver in modern economy is technology. Each technology has its own intrinsic characteristics that limit and constrain its use and applications in commerce by humans. Current economic theories, financial systems and legal principles were developed in simpler times to constrain, limit and control human activities related to innovations and novelties – starting with tulips.
For each primary technology, there are clusters of associated technologies that also need to be integrated into the economic, social and political activities for them to be effective. Economic theories are the means by which these technology adoption cycles are implemented. But economic theories and financial systems do not factor in the natural potential and limits of the emerging technologies and resistance generated by technologies currently in use. Steam engine, railroads, internal combustion engine, jet engine, telephone are examples of past large scale technology adoption cycles.
The constraints imposed on the technology adoption cycles by economic theories more often than not inhibit their adoption, turning progress with them in fits and starts — and often in bubbles.
We need better ways of managing, introducing and propagating innovations, especially innovations with technology, into the economy.™¦
- The world has changed and economics hasn’t †“
- An illustration in market disconnect
- Pope Francis’s Theory of Economics, Heather Horn, Atlantic
- The Bankruptcy Of Modern Economics, Steve Forbes, Forbes
- Times have changed, and our economic vocabulary can’t keep up, Robert J. Samuelson, Washington Post
- We need economic theories fit for the real world, theguardian.com
- What a 241 year-old Dutch credit crisis tells us about market optimism, Edmund L. Andrews, qz.com
- Amazon’s drone delivery: How would it work? Doug Gross, CNN
- The History of Economics & Economic Theory Explained with Comics, Starting with Adam Smith (openculture.com)
- Pope Francis denounces ‘trickle-down’ economics (washingtonpost.com)