This thread is to congratulate Prof. Steve Keen for having his co-authored paper accepted by the Journal of Ecological Economics, and to thank him for the attached preprint. The correct role of energy in production has been absent from conventional economic theory for centuries.
Energy is a hard concept. This might explain its absence of economic models. And confirms Keen's courage to dare tackle the problem.
His new contribution gains even more relevance since we have entered the Anthropocene full steam ahead, further into overshoot.
His new contribution gains even more relevance since we have entered the Anthropocene full steam ahead, further into overshoot.
As @GeorgeMonbiot put it "The oligarchic control of wealth, politics, media and public discourse explains the comprehensive institutional failure now pushing us towards disaster." There are plenty of reasons to add economics to this list.
After reading Keen's first book "Debunking Economics" one starts asking if conventional economics exists to justify the current power structures. That would explain the number of fervent believers among the powerful.
Keen is also an expert in #SystemDynamics. His groundbreaking 1995 model of Minsky's financial instability hypothesis using System Dynamics allowed him to predict the 2008 crisis. Only a handful of economists did it and even less based on sound theory.
tandfonline.com/doi/abs/10.108…
tandfonline.com/doi/abs/10.108…
He developed the Minsky open-source software for economists to simulate the dynamics of macroeconomic models using tables similar to double-entry bookkeeping to avoid errors. The Godley Tables in reference to Wynne Godlay.
github.com/highperformanc…
github.com/highperformanc…
He is also a long-time supporter of "The Limits to Growth."
Physicist Tim Garrett @nephologue has shown there appears to be a fixed link between global rates of primary energy consumption and a very general expression of human wealth.
And yet economics almost ignores it. Fun: try googling "romer nobel prize economics" and count how many times the word "growth" appears in the first 10 articles. 135! Now count how many times "energy" or "limits" appear. Close to zero.
One might argue Romer's work is about growth. So the word growth should appear frequently. But ultimately growth is a consequence of using energy to turn ideas and materials into tangible stuff, generating a lot of waste and pollution.
Consider this. At the expected growth rate of 2.3% our energy and materials needs will double in 30 years. This means that the same amount we have consumed to date will be consumed in just 30 years. Let that sink in for a minute.
Accelerating endogenous growth requires even greater amounts of energy, in a world considered to be on the path to self-destruction because of energy use.
And yet Energy is not even mentioned. This sure is anecdotal but reflects the current mindset, albeit not scientifically.
And yet Energy is not even mentioned. This sure is anecdotal but reflects the current mindset, albeit not scientifically.
There is no decoupling. Which only confirms the importance of Keen's work.
In Keen's own words “Labor without energy is a corpse”. “Capital without energy is a sculpture.”
Congratulations and thank you.
Long live Professor Steve Keen.
In Keen's own words “Labor without energy is a corpse”. “Capital without energy is a sculpture.”
Congratulations and thank you.
Long live Professor Steve Keen.
