A nasty strain of austerity capitalism has taken over Europe, leaving broken lives in its wake. Researchers Servaas Storm and C.W.M. Naastepad consider how things got so bad, what role economists and misguided policy-makers have played, and how to change course.
Critics have torn into Piketty's model. In my view, Piketty's and Solow's models are both fundamentally flawed in that they rest on the same ahistorical, apolitical, two-factor neoclassical foundation.
In his State of the Union Address president Obama proposed that Congress increase the minimum wage to $9.00 per hour. Almost immediately a chorus of opposition based on neoclassical economics emerged, arguing that such a change would kill job creation.
As reports thicken of a possible deal between the White House and the House Republicans -- a deal which will supposedly avoid the rest of us going over some fiscal cliff on January 1 -- it is worth remembering at least four reasons why such a deal is probably best avoided.