Chapter
The Flaws of Treating the Economy as an Equilibrium System
19:53 - 25:29 (05:36)
The neoclassical school's subjective theory of value and focus on equilibrium was disrupted by Keynes, who emphasized the dynamic and non-equilibrium nature of capitalism. Understanding the monetary creativity and violence of capitalism requires a departure from a non-monetary, barter-focused perspective.
Clips
The neoclassical school of thought treats the economy as an equilibrium system, which is challenged by Keynesian economics.
19:53 - 22:30 (02:37)
Summary
The neoclassical school of thought treats the economy as an equilibrium system, which is challenged by Keynesian economics. However, in the constantly changing real world, change is the most significant characteristics of capitalism.
ChapterThe Flaws of Treating the Economy as an Equilibrium System
Episode#303 – Steve Keen: Marxism, Capitalism, and Economics
PodcastLex Fridman Podcast
Investment is subject to uncertainty and therefore volatility is normal in a capitalist economy.
22:30 - 23:32 (01:02)
Summary
Investment is subject to uncertainty and therefore volatility is normal in a capitalist economy. This uncertainty allows for creativity and potential demand, but also leads to fads, booms, and slumps.
ChapterThe Flaws of Treating the Economy as an Equilibrium System
Episode#303 – Steve Keen: Marxism, Capitalism, and Economics
PodcastLex Fridman Podcast
Adam Smith's belief that value comes from human labor is still relevant in post-Keynesian economics, which emphasizes that human preferences and happiness should be the drivers of economic analysis.
23:32 - 25:29 (01:56)
Summary
Adam Smith's belief that value comes from human labor is still relevant in post-Keynesian economics, which emphasizes that human preferences and happiness should be the drivers of economic analysis.