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Booknotes: Classical General Equilibrium Theory

August 29th, 2015 · No Comments

http://www.amazon.com/gp/product/0262633302?psc=1&redirect=true&ref_=oh_aui_detailpage_o02_s00
I finally got the last of the books on economic theory re: marginalist theory, equilibrium, etc…

But I just turned 70 and don’t have the energy to rush out and do a study of this kind of subject that I once did. And I don’t have access to a university library anymore. I already did it once in the nineties but was so pressed for time with WHEE that I didn’t really get the job done.

But there is nothing hard here. Take a close look: mathematical theories in economics don’t really make any close-match predictions. Amazing. If that happens in physics, your work is thrown out….Xxcept maybe in string theory.

But the whole subject is a riddle. I know, by smell, this is an ‘occulted’ aspect of history: not one but three economics arrive at vaguely similar results…, then again, with Arrow/Debreu/McKensizae. One for some sufi bloodhounds. Capitalists have some friends in high places. But the left has such friends, even higher. Bide one’s time.
To me, all that, which so confuses all others, shows a demonic fraud in action. And the math is bullshit, not hard to figure. it seems that the threat of marxism, among other things led to a wave of sophistry that would keep people confused for good. It seems to have worked.
But the Arrow, Debreu work seems more solid, it is a badge of honor for economists and one more mystification: the answer is simple: they discovered a new set of techniques but in broader strokes an economic system is far too complex for mathematics to really work at this point.

Anyway, I have assembled some study materials for some post-marxists to come (for the Redfortyeight Group, but this stuff should have been in LFM. I will make a new addendum to the book using the material linked to in the last post.

Stick to basics: a theory using differential equations in a field of free agents isn’t going to work. No matter how impressive the sommersaults that fact can’t be changed.

The problem here is that if a cadre of students begins to study this stuff the spell takes over and critical thought is lost. How can so many smart highly trained economists not notice that differential equations don’t work for free agents?
I refer you to Old Karl in the early (18) fifties, smelling a rat in the ‘theory’ of Ricardo. The smell grew worse and the idea that theory in economics is a Problem began to beg the future for Das Kapital.
What is remarkably is after ditching classical economics economists won’t on to still more mystification…

Tags: General

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