{"id":63263,"date":"2022-08-08T06:50:19","date_gmt":"2022-08-08T11:50:19","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63263"},"modified":"2022-08-08T06:50:19","modified_gmt":"2022-08-08T11:50:19","slug":"steve-keen-mythonomics","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63263","title":{"rendered":"Steve Keen: &#8220;Mythonomics\u201d"},"content":{"rendered":"<div class=\"blog-item-top-wrapper\">\n<div class=\"blog-item-title\">\n<h3 class=\"entry-title entry-title--large p-name\" data-content-field=\"title\"><a href=\"https:\/\/www.thegreatsimplification.com\/episode\/30-steve-keen?utm_source=substack&amp;utm_medium=email\">Steve Keen: &#8220;Mythonomics\u201d<\/a><\/h3>\n<\/div>\n<div class=\"blog-item-meta-wrapper\"><\/div>\n<\/div>\n<div id=\"yui_3_17_2_1_1659959239601_73\" class=\"blog-item-content-wrapper\">\n<div id=\"yui_3_17_2_1_1659959239601_72\" class=\"blog-item-content e-content\">\n<div id=\"item-62e817db8ca87902ed7953fc\" class=\"sqs-layout sqs-grid-12 columns-12\" data-layout-label=\"Post Body\" data-type=\"item\">\n<div id=\"yui_3_17_2_1_1659959239601_71\" class=\"row sqs-row\">\n<div id=\"yui_3_17_2_1_1659959239601_70\" class=\"col sqs-col-12 span-12\">\n<div id=\"block-bc406a30ef16647c22da\" class=\"sqs-block code-block sqs-block-code\" data-block-type=\"23\">\n<div class=\"sqs-block-content\"><iframe loading=\"lazy\" title=\"Embed Player\" src=\"https:\/\/play.libsyn.com\/embed\/episode\/id\/23939403\/height\/64\/theme\/modern\/size\/small\/thumbnail\/no\/custom-color\/04040c\/time-start\/00:00:00\/hide-playlist\/yes\/hide-subscribe\/yes\/download\/yes\" width=\"100%\" height=\"64\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<div id=\"block-338ecbcdc1084f9edb7e\" class=\"sqs-block image-block sqs-block-image sqs-col-5 span-5 float float-right sqs-text-ready\" data-block-type=\"5\">\n<div id=\"yui_3_17_2_1_1659959239601_69\" class=\"sqs-block-content\">\n<div id=\"yui_3_17_2_1_1659959239601_68\" class=\"image-block-outer-wrapper layout-caption-hidden design-layout-inline combination-animation-site-default individual-animation-site-default individual-text-animation-site-default sqs-narrow-width animation-loaded\" data-test=\"image-block-inline-outer-wrapper\">\n<figure id=\"yui_3_17_2_1_1659959239601_67\" class=\"\n              sqs-block-image-figure\n              intrinsic\n            \"><\/p>\n<div id=\"yui_3_17_2_1_1659959239601_66\" class=\"image-block-wrapper\" data-animation-role=\"image\">\n<div id=\"yui_3_17_2_1_1659959239601_65\" class=\"sqs-image-shape-container-element\n\n              has-aspect-ratio\n            \"><img decoding=\"async\" class=\"thumb-image loaded\" src=\"https:\/\/images.squarespace-cdn.com\/content\/v1\/61d5bc2bb737636144dc55d0\/f5f17776-f0ec-4792-8be5-51b5bf1a400b\/TGS30_SteveKeen.jpg?format=500w\" alt=\"\" data-src=\"https:\/\/images.squarespace-cdn.com\/content\/v1\/61d5bc2bb737636144dc55d0\/f5f17776-f0ec-4792-8be5-51b5bf1a400b\/TGS30_SteveKeen.jpg\" data-image=\"https:\/\/images.squarespace-cdn.com\/content\/v1\/61d5bc2bb737636144dc55d0\/f5f17776-f0ec-4792-8be5-51b5bf1a400b\/TGS30_SteveKeen.jpg\" data-image-dimensions=\"3000x3000\" data-image-focal-point=\"0.5,0.5\" data-load=\"false\" data-image-id=\"62e9d3565693493dcf77ee3a\" data-type=\"image\" data-image-resolution=\"500w\" \/><\/div>\n<\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"block-4b7d705e0f11cae6e880\" class=\"sqs-block html-block sqs-block-html\" data-block-type=\"2\">\n<div class=\"sqs-block-content\">\n<p class=\"\">On this episode, we meet with Economist, Author, and Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London, Steve Keen.<\/p>\n<p class=\"\">Keen discusses how mainstream economics misses the centrality of energy to our economy and to our futures, the naive treatment to the risks of money and debt creation, and the disconnect economic theory has to climate change risks.<\/p>\n<h4>About Steve Keen:<\/h4>\n<p class=\"\">Steve Keen is an economist, author of <em>Debunking Economics <\/em>and <em>The New Economics: A Manifesto<\/em>, a Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London.<\/p>\n<h4>Show Notes &amp; Links to Learn More<\/h4>\n<p class=\"\"><a href=\"https:\/\/www.thegreatsimplification.com\/s\/TGS30-SteveKeen-Transcriptdocx.pdf\" target=\"_blank\" rel=\"noopener\">PDF Transcript<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">00:40<\/span> &#8211; Steve <a href=\"https:\/\/www.patreon.com\/ProfSteveKeen\">Info<\/a> + <a href=\"https:\/\/www.amazon.com\/Steve-Keen\/e\/B001K87OZU%3Fref=dbs_a_mng_rwt_scns_share\">Works<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">03:30<\/span> &#8211; <a href=\"https:\/\/www.sydney.edu.au\/arts\/about\/our-people\/academic-staff\/frank-stilwell.html\">Frank Stilwell<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">03:50 <\/span>&#8211; <a href=\"https:\/\/stats.oecd.org\/glossary\/detail.asp?ID=3306\">Theory of the Second Best<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">05:17<\/span> &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Paul_Samuelson\">Paul Samuelson<\/a> and <a href=\"https:\/\/econpapers.repec.org\/article\/oupqjecon\/v_3a80_3ay_3a1966_3ai_3a4_3ap_3a568-583..htm\">paper (1966)<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">07:30 <\/span>&#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Neoclassical_economics\">Neoclassical economics<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">07:40 <\/span>&#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Alfred_Marshall\">Alfred Marshall<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">09:45<\/span> &#8211; <a href=\"https:\/\/www.thoughtco.com\/basic-behavioral-assumptions-of-economics-1147609\">Basic assumptions of economics<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">09:30 <\/span>&#8211; <a href=\"https:\/\/www.researchgate.net\/publication\/31438224_Keynote_Address_to_the_2003_HOPE_Conference_My_Keynesian_Education\">Contemporary macroeconomics is applied microeconomics<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">11:12<\/span> &#8211; <a href=\"https:\/\/www.frontiersin.org\/articles\/10.3389\/fpsyg.2019.02759\/full\">We are deeply social creatures<\/a>, and <a href=\"https:\/\/www.businessinsider.com\/econ-101-says-people-are-selfish-ruthless-taught-to-believe-2020-6#:~:text=Modern%20economics%20is%20built%20on,to%20supply%20them%20to%20us.\">this isn\u2019t accounted for in economics<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">11:40<\/span> &#8211; <a href=\"https:\/\/www.e-education.psu.edu\/eme444\/node\/306\">Theory of supply (rising marginal costs)<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">12:15<\/span> &#8211; <a href=\"https:\/\/www.jstor.org\/stable\/10.7758\/9781610440684\">In reality, supply has a falling marginal cost<\/a> (pg 102)<\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">12:35 <\/span>&#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Alan_Blinder\">Alan Blinder<\/a> + <a href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w3646\/w3646.pdf\">survey on marginal falling costs<\/a> (pg 22) and <a href=\"https:\/\/www.princeton.edu\/blinder\/textbooks.htm\">vs his textbook<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">18:30<\/span> &#8211; <a href=\"https:\/\/www.jstor.org\/stable\/1056148\">Energy is not included as an input (factor of production)<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">18:44<\/span> &#8211; <a href=\"https:\/\/www.gov.scot\/publications\/cge-modelling-introduction\/#:~:text=CGE%20models%20are%20large%20numerical,or%20shocks%20in%20the%20economy.\">Computable general equilibrium models<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">19:02 <\/span>&#8211; <a href=\"https:\/\/link.springer.com\/chapter\/10.1057\/9780333992753_5\">Rational Expectation Revolution<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">19:20 <\/span>&#8211; <a href=\"https:\/\/www.investopedia.com\/terms\/i\/intertemporal-equilibrium.asp\">Intertemporal equilibrium models<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">19:21<\/span> &#8211; <a href=\"https:\/\/mbounthavong.com\/blog\/2019\/2\/19\/cobb-douglas-production-function-and-total-costs\">Cobb-Douglas Function<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">19:24<\/span> &#8211; <a href=\"https:\/\/www.degruyter.com\/document\/doi\/10.21078\/JSSI-2016-269-11\/html?lang=en\">Constant elasticity of production function<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">20:26<\/span> &#8211; <a href=\"https:\/\/www.mdpi.com\/1996-1073\/10\/2\/202\/htm\">When energy is included it is to a very minimized extent<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">20:41 <\/span>&#8211; <a href=\"https:\/\/voxeu.org\/article\/what-if-germany-cut-russian-energy\">Working paper by Rudy Backmann looking at energy fall implications in Germany<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">21:57 &#8211;<\/span> <a href=\"https:\/\/journals.plos.org\/plosone\/article?id=10.1371\/journal.pone.0164733\">Change in energy and change in GDP is 1:1 (or .99)<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">22:11 <\/span>&#8211; <a href=\"https:\/\/pawn.physik.uni-wuerzburg.de\/~kuemmel\/English\/indexE.html\">Reiner K\u00fcmmel<\/a> and <a href=\"https:\/\/www.mdpi.com\/1099-4300\/18\/3\/75\/htm\">paper factoring energy into CD Production Function<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">23:10<\/span> &#8211; <a href=\"https:\/\/research.noaa.gov\/article\/ArtMID\/587\/ArticleID\/2764\/Coronavirus-response-barely-slows-rising-carbon-dioxide\">CO2 at 420 ppm<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">23:48 <\/span>&#8211; <a href=\"https:\/\/vaclavsmil.com\/wp-content\/uploads\/docs\/smil-article-2004world-history-energy.pdf\">Energy consumption\/output in roman slaves<\/a> (pg 558)<\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">24:44<\/span> &#8211; <a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S0921800919310067\">A barrel of oil is equivalent to 5 years of human labor<\/a> (Section 4.3)<\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">25:59<\/span> &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Adam_Smith\">Adam Smith<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">26:03 <\/span>&#8211; <a href=\"https:\/\/www.britannica.com\/topic\/physiocrat\">Physiocrats<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">26:59<\/span> &#8211; <a href=\"https:\/\/www.investopedia.com\/terms\/l\/labor-theory-of-value.asp#:~:text=Smith%20wrote%20that%20labor%20was,items%20on%20a%20relative%20basis.\">Evolution of Labor Theory of Value<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">28:40<\/span> &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Robert_Solow\">Robert Solow<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">29:30 <\/span>&#8211; <a href=\"https:\/\/rcc.harvard.edu\/knowledge-technology-and-complexity-economic-growth#:~:text=In%20economics%2C%20it%20is%20widely,is%20what%20prosperity%20depends%20on.\">The assumption is that technology is responsible for our massive growth<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">30:12<\/span> &#8211; <a href=\"https:\/\/www.insead.edu\/faculty-research\/faculty\/robert-u-ayres\">Bob Ayres<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">31:10<\/span> &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/James_Watt\">James Watt &#8211; Steam Engine<\/a><\/p>\n<p class=\"\"><span class=\"sqsrte-text-color--lightAccent\">31:00<\/span> &#8211; <a href=\"https:\/\/nyaspubs.onlinelibrary.wiley.com\/doi\/10.1111\/j.1749-6632.2010.05921.x\">Energy is the true driver of growth, not technology<\/a><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Steve Keen: &#8220;Mythonomics\u201d On this episode, we meet with Economist, Author, and Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London, Steve Keen. Keen discusses how mainstream economics misses the centrality of energy to our economy and to our futures, the naive treatment to the risks of money and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,4],"tags":[12346,560,750,32632],"class_list":["post-63263","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-environment","tag-nate-hagens","tag-neoclassical-economics","tag-steve-keen","tag-the-great-simplification"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63263"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63263\/revisions"}],"predecessor-version":[{"id":63264,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63263\/revisions\/63264"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}