Britannia Radio

Max Keiser And Sandeep Jaitly Explain

Why Modern Economics Is “Rubbish”

Tyler Durden

Zero Hedge

June 26, 2011

One of Zero Hedge’s recurring peeves with modern economics (at its basis, the flawed premise behind modern broken capital markets) is that modern economics, as taught by every Ivy League, and other, institution, and implemented by modern acolytes of Keynes and other spin off theories, is nothing but garbage: a sham voodoo science, which attempts to attribute an empirical basis to something which is inherently irrational.

It is this irrationality that alternative, and thus non-mainstream, approaches to popular economics attempt to discredit, so far with zero success, as such a coup d’etat would mean an immediate end of the “status quo”^TM which is for all intents and purposes the only thing that must be maintained in order for the wealthy to retain their wealth, and get far wealthier in the future (Paulson’s 3 page blank check proposal to Congress was nothing but a band aid attempt to fix the cumlination of decades of Keynesian failure).

The below attached interview between Max Keiser and Sandeep Jaitly provides a 3 minute, must watch glimpse into the basis of Austrian economics, although not through the lense of von Mises, but of Austrian founder Carl Menger, who founded the Austrian school on one axiom only: “value does not exist outside mankind’s consciousness.”

As Jaitly goes on to say, “all other forms of economics, classical, neoclassical economics, ascribe value to something else other than the human mind.” And the punchline, coming from a mathematician: “all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being.”