10 Economic Myths We Need to Junk
By Dinyar Godrej / newint.org
Jan 4, 2016

Never underestimate the power of cherished ideas. They are clung to ever tighter when we are suffering reality’s harshest knocks.

When it comes to economics, today’s over-riding article of faith is of the rule of the market. If only it were completely free and global, with notions of governance and workers’ rights out of the way, then the good capitalists would usher in an era of plenty with pickings for everyone, from top to bottom. Regulation, social provision, public ownership are all getting in the way, believers claim. Down with the public good, up with individual responsibility. You get what you deserve.

This economic orthodoxy is called neoliberalism – ‘neo’ because it is a 20th/21st-century revival of the 18th-century school of liberal economics which called for the abolition of government intervention in manufacturing and trade.

It finds particular favour when elites govern. But it has no solutions for the economic crashes we have seen in recent years.

We need a more social, ‘real world’ vision of the economic sphere. Demands for this change are on the street and also in the academy with students protesting against the orthodoxy they are taught. It’s in this spirit that we present 10 of the most damaging economic myths that we urgently need to ditch.

Click on each title to open the full New Internationalist article in a new window.

Myth 1: Austerity will lead to 'jobs and growth'

It's wrong to sell austerity as a cure for economic woes, says Dinyar Godrej.

Myth 2: Deficit reduction is the only way out of a slump

Don't rely on those who caused the crash to resolve it, argues David Ransom.

Myth 3: Taxing the rich scares off investors and stalls economic performance

Taxation creates prosperity just as much as private enterprise, says David Ransom.

Myth 4: Economic migrants are a drain on rich world economies

Migration follows a demand for labour - and benefits the receiving country, writes Dinyar Godrej.

Myth 5: The private sector is more efficient than the public sector

There is no evidence of greater efficiency, explains Dinyar Godrej.

Myth 6: Fossil fuels are more economically viable than renewables

Not if you look at the environmental costs, says Dinyar Godrej.

Myth 7: Financial regulation will destroy a profitable banking sector

Why should financial markets be accountable only to themselves? asks David Ransom.

Myth 8: Organized labour is regressive

David Ransom argues that the opposite is actually true.

Myth 9: Everyone has to pay their debts

We need debt management not reduction, says Dinyar Godrej.

Myth 10: Growth is the only way

Dinyar Godrej explains why we need to find another way, fast.

 

0.0 ·
0
Trending Today
Revolution and American Indians: “Marxism is as Alien to My Culture as Capitalism”
Russell Means19,852 views today ·
History Tells Us What May Happen Next With Brexit and Trump
Tobias Stone9,339 views today ·
15 Powerful Quotes From the World's Most Humble President
Hyacinth Mascarenhas8,905 views today ·
MP Says Government is Intentionally Making People Destitute to Prevent Organised Opposition
2 min5,674 views today ·
An Inconvenient Sequel: Truth To Power
3 min3,462 views today ·
Trump is a Symptom of Corporate Globalization
Helena Norberg-Hodge3,429 views today ·
Welcome to Marinaleda: The Spanish Anti-Capitalist Town With Equal Wage Full Employment and $19 Housing
Jade Small3,373 views today ·
Every Town Needs a Remakery
Jeremy Williams3,161 views today ·
Debating the British Empire's 'Legacy' Is Pointless - This Is Still an Imperial World
Ibtisam Ahmed3,122 views today ·
Load More
New
Trump is a Symptom of Corporate Globalization
Helena Norberg-Hodge
Up Close and Personal With Norwegian Orcas
2 min
An Inconvenient Sequel: Truth To Power
3 min
Why Did Activists Chain Themselves to the Runway at Stansted Airport?
Plane Stupid
Rosie the Riveter for the 21st Century: You Dreamed, We Drew
Jennifer Luxton
Meet The Woman Rescuing Fruit and Feeding Her Community
2 min
Debating the British Empire's 'Legacy' Is Pointless - This Is Still an Imperial World
Ibtisam Ahmed
9 Times Video Games Were Great for Mental Health
Marijam Didzgalvyte and Jish Newham
What is Populism?
6 min
Load More
What's Next
Richard Wilkinson: How Economic Inequality Harms Societies
17 min
Cut the Working Week to a Maximum of 20 Hours, Urge Top Economists
Heather Stewart
Fusk-åka - Rik Vs. Hemlös / Fare Evasion - Rich Vs. poor
3 min
Like us on Facebook?
10 Economic Myths We Need to Junk