February 27, 2011 Leave a comment
In his excellent recent book Zombie Economics: how dead ideas still walk among us John Quiggin, of the University of Queensland, provides an accessible account of some key economic ideas. These ideas provided the intellectual rationale for substantial social changes we have witnessed over the last 30 years. Many of these ideas boil down to theoretical justifications for the claim that markets are a better means of allocating resources than all available alternatives. Quiggin also summarises arguments against these theoretical rationalisations. The case against markets can be boiled down to the argument that whatever conventional economics might believe to be the case in theory, the real world just doesn’t follow the script. Working on the basis that it does is a recipe for disaster. This raises a crucial question: given that many of these ideas lack strong intellectual support – they are, or should be, ‘dead’ – why do they continue to exert such influence on policy? Societies are being subjected to “zombie economics”.
One of the topics with which Quiggin engages is privatisation. Read more of this post