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> The politicians already have access to the best economic advice they care to listen to. The most likely scenario where they make the same choices for the same

> The politicians already have access to the best economic advice they care to listen to. The most likely scenario where they make the same choices for the same reasons. No they would not. I brought two examples: Greece unemployment and German export surplus. Under neoliberal advice, in both cases it led to a disaster. Not because some variables were wrong, but because the underlying theory is wrong. The neoliberal theory does NOT account for the fact that labour has to buy all the produced goods, which in turn means, supply and demand are NOT independent variables on the labour market (the wages one gets paid are used to buy things and thus have an effect on other jobs). Macro does account for this fact and comes to better solutions. Politicans did NOT get the correct advice, because micro is mainstream.

roenxi 4y ago
That example is poorly cited and, in all likelihood, an example of you misunderstanding how politicians make decisions. I'm not sure what you think they do, but I guarantee that they do not sit down and start with questions about what is the most economically savvy policy. The outcomes are too economically unhinged for that to be the process. Typically the decisions politicians don't make sense in any framework except asking if they might survive one more election.
- Phil_Latio 4y ago
  In this case the so called "Troika" made the decisions. A cooperation between the european central bank, the european comission and the international monetary fund. I guess anyone would expect that these organisations have the best people at hand. And that may be true when it comes to the neoliberal theory. Why is it so hard for you to accept that there are two contradicting theories with one of them being mainstream while the other is not? You know what the IMF did when they realized their theory failed? They essentially wrote that in future, it might be necessary to force companies to employ people when wages are cut at the same time. This proposal is in stark contrast to the neoliberal theory, because this theory is wrong and did not work. Well I guess this leads to nowhere. I give you the last word if you want =)

roenxi 4y ago

That example is poorly cited and, in all likelihood, an example of you misunderstanding how politicians make decisions. I'm not sure what you think they do, but I guarantee that they do not sit down and start with questions about what is the most economically savvy policy. The outcomes are too economically unhinged for that to be the process. Typically the decisions politicians don't make sense in any framework except asking if they might survive one more election.

Phil_Latio 4y ago
In this case the so called "Troika" made the decisions. A cooperation between the european central bank, the european comission and the international monetary fund. I guess anyone would expect that these organisations have the best people at hand. And that may be true when it comes to the neoliberal theory. Why is it so hard for you to accept that there are two contradicting theories with one of them being mainstream while the other is not? You know what the IMF did when they realized their theory failed? They essentially wrote that in future, it might be necessary to force companies to employ people when wages are cut at the same time. This proposal is in stark contrast to the neoliberal theory, because this theory is wrong and did not work. Well I guess this leads to nowhere. I give you the last word if you want =)