The Urgent Need to Save Orthodox Economists from their Crippling Myths


New Economic Perspectives has the article The Urgent Need to Save Orthodox Economists from their Crippling Myths by William K. Black.

The failure to understand the role of epidemics of accounting control fraud in driving each of our three modern financial crises is not a small failure of orthodoxy, it should be viewed as a crisis that endangers the global economy. We should all be working together urgently to repair that failure, which will require a multi-disciplinary and multi-methodological effort. Some of us have been trying to do this for decades. We hope the blogger will join us in that ongoing effort. Your fears that you need to learn a newly invented, secret and “occult” methodology in order to practice effective economics are baseless. Reading Akerlof and Romer (available free on line) and some of our hundreds of freely available articles is a good start.

This article explains why the orthodox economists, like the ones who criticize Bernie Sanders’ economic proposals, keeps them from being able to predict the behavior of the modern economy. I think that their inability to believe that people commit fraud, is similar to what prevents them from believing what John Maynard Keynes explained in the 1930s and 1940s. A simple Keynesian explanation is so obvious an explanation for the current economic stagnation, that I just cannot fathom why these so-called liberal economists refuse to accept it. Perhaps these economists just refuse to believe that Milton Friedman practiced academic fraud when he “disproved” Keynes’ explanation. I learned my economics before Milton Friedman came on the scene to spout his malicious clap-trap. Maybe that is why I was not fooled by it, even though the author of the book from which I learned my economics, Paul Samuelson, had to admit that he mistakenly changed the book after I read it because of being duped by Milton Friedman.

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