
What If This Is No Accident? What If This Is The Future? - ssclafani
http://techcrunch.com/2011/11/12/what-if-this-is-the-future/
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wisty
Let's see productivity growth figures then. We aren't destroying jobs with
productivity (yet), we are funnelling more and more money into management and
finance, while worker bees get paid less. This is partly due to bad economic
policy, and partly due to the threat of outsourcing (which should be easing
off, now that China has hit the turning point).

Bad economic policy - the neo-liberals seem to believe in some stupid stuff
like the Efficient Market Hypothesis, and don't accept The Theory of the
Second Best as consequential. While the EMH is true in a sense, it's also used
as an excuse to not refine economic theory. Some non-mainstream economists
(such as the Australian Steve Keen) realised that excessive debt was going to
destabilise the economy. But the Reserves didn't believe it, so they set
policy, and while the market responds it might not be to correct the Fed's
mistakes but to take advantage of the bailouts. Then there's The Theory of the
Second Best - that one step close to a totally free market may actually leave
the economy worse off, not better, despite a free market being the
(theoretical) global maximum.

