Forum Post: Modern Economics Has Failed Us, Says Economist Graeme Maxton
Posted 13 years ago on Oct. 18, 2011, 12:24 p.m. EST by AmericanRedWhiteBlue
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All the below, from the video at:
"The End of Progress: How Modern Economics Has Failed Us," says it's because economists and market participants have neglected some of [Adam] Smith's most important teachings, including that of social responsibility.
"The gap between rich and poor has gotten far bigger than it should have," Maxton tells Aaron Task in the accompanying clip. "We're not taxing the rich, as Adam Smith said we should, we're underpricing the world's resources, and we're not intervening in markets when we should."
Maxton says Smith was not solely about profits and gains. Smith was just as interested in morality. However, modern economists have ignored that notion and focused primarily on "this belief that the markets were self-correcting."
The result: greater income inequality and instability that "will last for years to come," says Maxton.
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