imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Economist criticizes "pathological allegience" to economic models

by Rudolf Hickel Tuesday, May. 15, 2012 at 4:08 AM
mbatko1@hotmail.com

The crisis was born when Maggie Thatcher and then Bill Clinton deregulated the financial markets. The explosive force that was detonated was incalculable. Economics gave support because it provides models.

ECONOMIST CRITICIZES “PATHOLOGICAL ALLEGIENCE” TO ECONOMIC MODELS

Rudolf Hickel urges a new economic theory

[This interview published on dradio.de 4/13/2012 is translated from the German on the Internet, ]

In the view of economist Rudolf Hickel, many of his colleagues lack courage to fight crises and prevent them from the start with new ideas. Lessons from the “failure of finance-driven capitalism” must be drawn.

Dradio: During the economic- and financial crisis, a system collapsed that believed too much in the market and pursuit of profit. Whenever politics did something to combat the Euro crisis, these markets, the financial markets, had to be satisfied or at least calmed.

The surprising survival of neoliberalism is the title of the English economist Colin Crouch’s latest book. In Germany, some are now surprised that economics seems to have learned so little from the crisis. A circle of nearly 100 professors emphasized this in a Memorandum for the Renewal of Economics. Rudolf Hickel, professor at the University of Bremen, was one of the first signers and joins us for an interview.

Dradio: Is this crisis that we experience a child born in the economic faculties?

Hickel: Not immediately. It was not born there. The crisis was born when Maggie Thatcher and then Bill Clinton deregulated the financial markets. The explosive force that detonated was incalculable. Economics indirectly gave support because it provides models according to the motto: financial markets are never susceptible to crises. They can always operate optimally. The banks function like clockwork. This kind of political advice obviously has a great responsibility for the crisis. The advisory economy must now finally draw the lessons from this crisis, rebu9ilt its textbook models and include the financial markets’ susceptibility for crises in the future.

Dradio: You say the guild did not do this in the past. What is the reason? Is imagination lacking?

Hickel: The reasons are clear. The courage to grapple with the rulers is lacking. When one criticizes the banks, for example when Deutsche Bank is decried for its gigantic speculative businesses with food on the commodity futures exchange, the interaction can become cheerless and nasty. There are really two reasons: first, the somewhat convulsive allegiance to the elegance of the models. According to the Hegelian motto, too bad for reality if it doesn’t agree with the model. Secondly, the courage to organize the guild critically is lacking, strictly speaking to understand the lessons of the failure of finance-driven capitalism.

Dradio: Perhaps economics thinks according to the basic principle of the economy, namely the principle of the market, buy, sell and make as much profit as possible.

Hickel: Well, what can you say, if that were the substance of economics, I would suggest abolishing it since it would really have lost its very important function. Economics must be critical economics. There are marvelous historical predecessors. Adam Smith, one of its founders, saw very critically. Economics must be critical economics. There are marvelous historical predecessors. Adam Smith, one of its founders, saw very critically. Crisis and malformation can be triggered when the economic profit motive is followed or the Homo oeconomicus is assumed, a highly-individualized, abstract, socially-empty figure that always maximizes his advantages. No welfare in the macro-economic context occurs. That welfare is really the task of economics.

The regulars’ table and current policy ignore this. But our job – in our study group Alternative Economic Policy – is two fold, first showing that such systems are prone to brutal crises – always afflicting those who had nothing to do with the crisis – and secondly demonstrating models of coming out of this.

Dradio: The question is why isn’t politics changed? When we look back in economic history, there is this terrific story of the rise of neoliberalism. Economists smiling condescendingly around Milton Friedman developed this theory in the 1970s. As you mentioned, politicians like Maggie Thatcher in Great Britain and Ronald Reagan in the 1980s raised this neoliberalism on their banners. In this situation of crisis, politics must successfully show alternatives and then make them into policy.

Hickel: Yes, when these alternatives are shown, there must be massive interference in the past controlling powers of the economic system. This is the point where nothing has happened. An example could make this clear. In 2009 the German chancellor under the shock of the crisis flew to London and declared there may never be financial market products, financial markets and financial institutions that are not strictly controlled. Today we ask what is left of this resolve. Today the sentence is reversed; the financial markets and the banking system must be spared. This obviously reflects the conditions of the political landscape.

Our problem which is the problem of criticism is that our proposals always encounter enormous opposing interests and cannot be simply realized. In the meantime there is a gradual learning process even in mainstream economics. Mainstream economics has been so widely criticized that people now understand we need a new theory that gives special emphasis to a much clearer policy.

Dradio: We ask questions about this new theory. What does it look like? What would our economy look like if it were based on such a theory?

Hickel: Well you know – I say very plainly and a little superficially – the markets must be tamed. The financial markets must be restrained. The banks must be taken and smashed, particularly in the investment- and speculative area that must be reduced throu9gh regulation.

Then we need a financial transactions tax to contain the international speculative businesses. There is already an instrument for this. We only use the market forces where they are efficient. When they produce crises and grave burdens on the economy or on society and politics, counter measures are necessary, a stronger primacy of creative policy. Politics itself must obviously be re-structured since politics failed tremendously in Germany in 2002 and 2003 with the deregulation of the financial markets.

Dradio: But isn’t state correction and state regulation the logic of these markets which occurs after such a crisis situation – so it runs better? Then people say any regulation limits growth so the economy falls again in the international competition. Isn’t that the inner logic of what must be called the end of capitalism?

Hickel: We now have a bank bailou8t fund that was created and into which the banks pay. This starts from the logic that you described, that banks at the end are paid out of a pot when the next crisis erupts. We say crisis must be prevented, for example through prohibition of the shadiest speculative instruments. The commodity futures market must be controlled. The third imperative is fighting the shadow banks. A broad consensus exists from the German government’s chief advisor Issing to the World Bank that these shadow banks must be fought and not become concrete.

Dradio: Then we will see whether this great consensus leads to any political results.

Hickel: That is the great question!

Dradio: Rudolf Hickel, economics professor and first signer of the Memorandum for a Renewal of Economics, hearty thanks for this interview!

RELATED LINKS:

Hickel, Rudolf, “The Banks Must Serve the Real Economy”

http://portland.indymedia.org/en/2012/05/415612.shtml

Altvater, Elmar, "The Great Crash or the Century Crisis"

http://portland.indymedia.org/en/2011/11/412310.shtml

Batko, Marc, "Shouting from the Caboose"

http://portland.indymedia.org/en/2008/04/374941.shtml

Konasz, Tomasz, "The Crisis Explained"

http://dadaarchive.chicago.indymedia.org/newswire/display/95700/index.php

Lohoff, Ernest and Trenkle, Norbert, "The Great Devaluation"

http://portland.indymedia.org/en/2012/05/415594.shtml

Reiber, Norbert, "Stagnation as a Trend”

http://www.indybay.org/newsitems/2011/09/26/18691357.php

Schutze, Ingo, "Our Beautiful New Clothes"

http://freembtranslations.net/?page_id=216

Report this post as:

Local News

Change Links 2018 July posted J09 1:27PM

More Pix: "Families Belong Together," Pasadena J02 12:16PM

"Families Belong Together" March, Pasadena J02 12:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 4:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J10 11:58PM

Watch the Debate: Excluded Candidates for Governor of California M30 10:20PM

Change Links June 2018 posted M28 12:41AM

The Montrose Peace Vigil at 12 Years M22 1:01PM

Unity Archive Project M21 2:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 3:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 2:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 1:57PM

California police agencies violate Brown Act (open meetings) M02 1:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 4:47PM

Change Links May 2018 A27 1:40AM

Worker-Owned Car Wash on Vermont Closed A26 10:37PM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

More Local News...

Other/Breaking News

14 Disturbing Facts About Scott Gottlieb, Trump's FDA Head J20 10:47PM

Behind the scenes at fbi National Academy J20 2:47PM

Treasury Takes Aim at Shell Companies J20 11:18AM

Paraphysique de l'intelligence J20 9:08AM

Oklahoma GOP Senator Jim Inhofe's Bloody Record J20 4:01AM

Globalization: hope on the horizon despite Fake Liberals. J20 3:41AM

Sorry President Trump,Ted Cruz Texas Judicial System,is Worse Than Many Shithole Countries J19 4:49PM

The Shortwave Report 07/20/18 Listen Globally! J19 4:33PM

The System Question as a Survival Question J18 8:54PM

Nation's Largest Voting Machine Co., ESS, Admits Lying Re Having Installed Remote Control J18 11:55AM

Du pain et des jeux J18 9:53AM

Paraphysique de martyrologie J17 8:00AM

Children Incorporated Earns 4-Star Rating on Charity Navigator J16 11:24AM

Democratic Socialists of America J14 4:57PM

Leonard Peltier Non Violent Native American Political Prisoner since 1970's J14 4:18PM

Paraphysique miscellanées de l'aggiornamento J14 12:54AM

FBI Investigated LA County Sheriff Baca,Why Not Hank Skinner's Persecution? J13 3:52PM

Updated Partial List Of Famous Vegetarians, Vegans, & Fruitarians J13 2:59PM

The Shortwave Report 07136/18 Listen Globally! J12 4:36PM

Social Policy as Social Infrastructure J12 3:38AM

Vol I: 84 Varieties Of GOP Election Fraud J12 1:50AM

Texas Can Call it An Execution,But It is A State Sponsored Murder of Hank Skinner.. J11 6:48PM

June 2018 Honduras coup update J11 3:35PM

Maria Estrada doubles down on racist support J11 1:40PM

New York Women in Film & Television Announces 2018 NYWIFT Ha Phuong Scholarship Recipients J11 10:14AM

Trapps de la domination, trapps de l'aliénation J11 1:31AM

Please Work For The Defeat Of Brett Kavanaugh And Why J09 8:54PM

Transinhumanisme ( transe inhumanisme ) J09 12:44PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy