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Forum Post: Myth of Perpetual Growth is killing America - 'Everything you know about economics is wrong', by Paul B. Farrell

Posted 1 year ago on June 13, 2012, 9:31 p.m. EST by shadz66 (17985)
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"Myth of Perpetual Growth is killing America"

'Everything you know about economics is wrong',

by Paul B. Farrell.

SAN LUIS OBISPO, Calif. (MarketWatch : http://www.marketwatch.com/ )

Yes, everything you know about economics is wrong ! Dead wrong !! Everything !!! The conclusions of economists are based on a fiction that distorts everything else. As a result economics is as real as one of the summer blockbusters like “Battleship,” “The Avenger” or “Prometheus.”

The difference is that the economic profession is a genuine threat, not entertainment. Economics dogma is on track to destroy the world with a misleading ideology.

Why ? Because all economics is based on the absurd Myth of Perpetual Growth. Yes, all theories and business plans based on growth are mythological.

Economists are master illusionists who rely on a set of fictions, fantasies and forecasts that emanate from a core magical mantra of Perpetual Growth that goes untested year after year.

And yet it’s used to manipulate the public into a set of policies and decisions that are leading the American and the world economy down a path of unsustainable globalization and GDP growth assumptions that will self-destruct the planet.

Denial ? We’re all addicted to the Myth of Perpetual Growth.

Yes, economists are addicted to this ideology. Trapped deep in their denial, can’t see the problem, or admit it, or if they do, they are unable to stop themselves, see past their own myopic world view. They’re mercenaries working for capitalists who pay their salaries, and expect them to support the capitalist’s bizarre Myth of Perpetual Growth.

Worse, the public also bought into the myth. Yes, you believe everything you learned in college about economic theories, all the textbooks, everything you read in the daily press, the government reports, all those Wall Street analysts’ predictions relying on studies prepared by economists with credentials.

But everything you think you know about economics … is wrong. Dead wrong. And until economics acknowledge this, the discipline is on a self-destruct path.

Why? The science of economics is not science. Yes, it looks scientific with all the fancy math algorithms and computer models that economists use, but all that’s just window dressing to make the economist look scientific and rational.

They’re not. Their conclusions are pre-ordained, fabricated, based on their biases, personal ideologies and whatever their employer wants to prove to manipulate consumers, voters or investors to buy what they’re selling.

‘What do you call an economist with a prediction ? Wrong !'

Don’t believe me? Go look at USA Today’s quarterly surveys of 50 economists projections of GDP growth. Invariably off by a large margin. And Barron’s Big Money poll? In past reviews we’ve seen a wide gap in forecasts by the bulls and bears.

Bottom line: Whether it’s Roubini or Roach, Kudlow or Krugman, you can’t trust the predictions of any economist. Ever. Best warning: That famous BusinessWeek editorial several years ago headlined: “What Do You Call an Economist with a Prediction? Wrong.”

Unfortunately, we live in a world of capitalists who thrive on the great Myth of Perpetual Growth, endless growth, ad infinitum, forever, till the end of time.

But driving the economists’ growth myth is population growth. It’s the independent variable in their equation. Population growth drives all other derivative projections, forecasts and predictions. All GDP growth, income growth, wealth growth, production growth, everything. These unscientific growth assumptions fit into the overall left-brain, logical, mind-set of western leaders, all the corporate CEOs, Wall Street bankers and government leaders who run America and the world.

But just because a large group collectively believes in something doesn’t make it true. Perpetual growth is still a myth no matter how many economists, CEOs, bankers and politicians believe it. It’s still an illusion trapped in the brains of all these irrational, biased and uncritical folks.

No-win scenario : Damned if we grow ? Damned it we don’t grow ?

Capitalism itself is at a crossroads. Growth is capitalism’s sacred cow but it’s “grow or die” theory doesn’t work anymore. With us since 1776, it’s being challenged by a “new god of reality” that’s flashing warnings of an emerging new reality from critics, contrarians and eco-economists. This war is pitting old and new economists :

  • Grow OR Die. Traditional economists (pro-capitalism): We’re told we need 3% GDP growth to support the next batch of 100 million Americans. We believe it on faith. Drill Baby Drill. Buy stuff. Get new jobs to fuel growth. We’re out of control. Exploding growth fuels demands as the rest of the world adds 2.9 billion new humans, all chasing their “American dream.”

  • Grow AND Die. New eco-economists (environmentalists): They see Big Oil’s destruction of our coastal economies, the rape of West Virginia’s coal mountains, the unintended consequences of uncontrolled carbon emissions and they ask: “When will economists, politicians and corporate leaders stop pretending Earth’s resources are infinitely renewable?”

Yes, our world is at a crossroads, facing a dilemma, confronting the ultimate no-win scenario, because the “Myth of Perpetual Growth” is essential to support the global population explosion. But all this “Growth” is also killing our world, wasting our planet’s non-renewable natural resources. “Eternal Growth” is suicidal, will eventually destroy Earth. We’re damned if we grow. Damned if we don’t.

Future economists will be forced into a No-Growth Economics.

But will economists change as long as they’re mercenaries in the employ of Perpetual Growth Capitalists? No. It will take a new mind-set. The difference between the mind-set of traditional economists and the new eco-economists is simple: Traditional economists think short-term, react short-term, pursue short-term goals. New eco-economists think long-term.

Initially this may seem overly simplistic, but fits perfectly. Here’s why :

  • Old traditional economists — short-term thinkers : Traditional economists are employees and consultants for organizations with short-term views — banks, big corporations, institutional investors, think-tanks, government. They all think in lock-step, driven by daily returns, quarterly earnings, annual bonuses. Short business and election cycles are more important than what happens a decade in the future. Their brains are convinced: If we can’t survive the short, long-term is irrelevant.

  • Environmental economists — long-term thinkers : New eco-economists see, think and plan for the long-term. They know traditional economists’ and capitalists’ thinking is setting America up for more and bigger catastrophes than the Gulf oil spill and the last meltdown. The “Avatar” film is a perfect metaphor: Soon capitalism will exhaust Earth’s resources forcing us to invade distant planets searching for new energy resources.

Actually something more immediate will force change much sooner. You are not going to like it: United Nations and Pentagon studies predict population growth (the main driver of all economic growth) will create unsustainable natural-resources demands as early as 2020 with global population exploding from seven to 10 billion by 2050. So expect Depression Era austerity, unemployment and a new no-growth economy.

Will we change? In time? Plan ahead? No, we won’t wake up without a collapse. We know the Myth of Perpetual Growth is pure fiction. But we also know our leaders, capitalists, economists and politicians all live in a collective conscience that must believe in this bizarre myth in order to justify everything they believe about the future, about progress, about income and wealth increasing, about a better life.

So we will all hang on … until a catastrophe shocks our world, forces us to wake up and let go, newly aware of the absurdity of the Myth of Perpetual Growth on a planet of finite resources. And it will happen sooner than you think.

~

e tenebris, lux ...

~

Copyright © 2012 MarketWatch, Inc. All rights reserved.

[Article copied under "Fair Use" from : http://www.marketwatch.com/story/myth-of-perpetual-growth-is-killing-america-2012-06-12?reflink=MW_news_stmp ]

23 Comments

23 Comments


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[-] 2 points by niphtrique (323) from Sneek, FR 1 year ago

Economics is a pseudo science like astrology.

[-] 1 points by shadz66 (17985) 1 year ago

Further to both your comment and my 'forum-post', I append :

fiat lux ...

[-] 1 points by shadz66 (17985) 1 year ago

For insights into some of the hidden aspects of this "pseudo science" & to follow on from the excellent documentary film "97% Owned" (abv.), please also see :

ipsa scientia potestas est ....

[-] 1 points by stevebol (1268) from Milwaukee, WI 1 year ago

Same as poly sci.

[-] 2 points by niphtrique (323) from Sneek, FR 1 year ago

The sad thing is that astrology is quite harmless compared to economics. Like he says:

Yes, everything you know about economics is wrong. Dead wrong. Everything. The conclusions of economists are based on a fiction that distorts everything else.

The difference is that the economic profession is a genuine threat, not entertainment. Economics dogma is on track to destroy the world with a misleading ideology.

[-] 1 points by shadz66 (17985) 1 year ago

Further to your comment & with reference to "The Theory of Money", please do try to catch the new, insightful & excellent Video Documentary :

When money drives almost all activity on the planet, it's essential that we understand it. Yet simple questions often get overlooked - questions like : Where does money come from ? Who creates it ? Who decides how it gets used ? And what does that mean for the millions of ordinary people who suffer when money and finance breaks down ?

fiat lux ...

[-] 2 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

Twittered.

[-] 2 points by geo (2638) from Concord, NC 1 year ago

Can it be said any clearer? The train is coming down the track, when will we end this insane game of chicken?

[-] 1 points by shadz66 (17985) 1 year ago

Gar Alperovitz ( http://www.garalperovitz.com/ ) is right in the vanguard of the 'new thinking', that is so very necessary in The U$A at the present time.

"Once you realize money must be and is regularly created and expanded, then the interesting questions begin to occur - like "How is it done ?" & "Who benefits from it ?"" - from :

radix omnium malorum est cupiditas ...

[-] 3 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago
[-] 2 points by shadz66 (17985) 1 year ago

Thanx for this very interesting 'forum-post' link - further to which I append the following re. ...

"The Grace Commission" :

multum in parvo ...

[-] 2 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

Excellent material to be shared out.

I can always count on you.

Thanks.

[-] 2 points by shadz66 (17985) 1 year ago

You're welcome. Further and in order to gain very important insights into the attitudes, behaviour and machinations of 'High Finance Crapitalism' and to realise how and why we are in the mess we are in - please also try to refer to :

ipsa scientia potestas est ...

[-] 2 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

You are a veritable warehouse of good information. It would be awesome if this stuff could be archived on this site in such a way as to make access as easy as one stop shopping. To be able to go to an index on issues and copy out links to be shared to other social media groups.

I think I will forward the idea to jart and see what she thinks.

[-] 1 points by shadz66 (17985) 1 year ago

Thanx & further, I draw your attention to 'Occupy The SEC' ( http://www.occupythesec.org/ ) which is a critical, technical arm of "Occupy" and well worth consideration and support.

per aspera ad astra ...

[-] 2 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

Further on the subject of information education and outreach


[-] 3 points by DKAtoday (9205) from Coon Rapids, MN 39 minutes ago

I don't have any PM's to use so I had to contact you here.

Hey jart - something to consider - I hope.

Short exchange containing thought on effective/efficient communications.


[-] 1 points by shadz66 (4633) 0 minutes ago

You're welcome. Further and in order to gain very important insights into the attitudes, behaviour and machinations of 'High Finance Crapitalism' and to realise how and why we are in the mess we are in - please also try to refer to :

a) http://retheauditors.com/ ;

b) http://www.teribuhl.com/ ;

c) http://www.nomiprins.com/ ;

d) http://rt.com/programs/keiser-report/ ;

e) http://rt.com/programs/capital-account/ &

f.) http://publicbankinginstitute.org/home.htm .

ipsa scientia potestas est ...

↥twinkle ↧stinkle reply permalink


[-] 1 points by DKAtoday (9205) from Coon Rapids, MN 0 minutes ago

You are a veritable warehouse of good information. It would be awesome if this stuff could be archived on this site in such a way as to make access as easy as one stop shopping. To be able to go to an index on issues and copy out links to be shared to other social media groups.

I think I will forward the idea to jart and see what she thinks.

↥twinkle ↧stinkle reply edit delete permalink ↥twinkle ↧stinkle reply edit delete permalink


[-] 2 points by jart (823) from Brooklyn, NY 13 minutes ago

Maybe we could just start a wiki. If I set up MediaWiki, would you guys be interested in helping to fill it with content?

↥twinkle ↧stinkle reply permalink


[-] 2 points by DKAtoday (9205) from Coon Rapids, MN 8 minutes ago

I know I would - I am an old dog but I can still try and learn a new trick. Can you do an Occupy Post with the suggestion?

We really need to be able to access good information already shared and be able to stop reinventing the wheel.

What do the rest of you guys think?

An outreach and education site.

Hey?

↥twinkle ↧stinkle reply edit delete permalink

[-] 1 points by Misaki (893) 1 year ago

So expect Depression Era austerity,

Imagine if they had Internet during the Great Depression.

e tenebris, lux

Am I the only person who uses Google Translate for these phrases?

Anyway, the solution to "growth obsession": http://jobcreationplan.blogspot.com/

[-] 1 points by shadz66 (17985) 1 year ago

Thanx. Interesting blog & read some of it here before. To follow, an article that may be of some interest :

fiat lux ...

[-] 1 points by Misaki (893) 1 year ago

The effect of creating “balance sheet wealth” in this way is to load down the “real” production-and-consumption economy with debt and related rentier charges, adding more to the cost of living and doing business than rising productivity reduces production costs.

Corporate profits at $1.6 trillion last year. Doesn't seem like banks are adding much to the cost of doing business. Almost seems like the article is aimed at people who are unaware how the economy is doing as a whole, by convincing people that "we need more rich people!!1" and so they should worker harder in their jobs because businesses are struggling too!

These “cash for trash” swaps have turned the mortgage crisis and general debt collapse into a fiscal problem. Shifting the new public bailout debts onto the non-financial economy threaten to increase the cost of living and doing business.

Whatever costs incurred from taking on mortgage debt are in the past. Any increase in taxes is due to the desire to create and retain jobs, not so the government can bail out more banks. This seems to be exploiting a lack of awareness that banks were required to pay back TARP loans. From Wikipedia:

"Of the $245 billion handed to U.S. and foreign banks, over $169 billion has been paid back, including $13.7 billion in dividends, interest and other income, along with $4 billion in warrant proceeds as of April 2010. AIG is considered "on track" to pay back $51 billion from divestitures of two units and another $32 billion in securities."

[-] 1 points by shadz66 (17985) 1 year ago

To follow the 'forum post' - 'CHUMBAWAMBA' : "Everything You Know is Wrong" ; http://www.youtube.com/watch?v=7xEwbzEBw14 !!

Resistance Is Fertile !!!

ad iudicium ...

[-] 2 points by Renneye (3166) 1 year ago

I really likey !! Post, song...and band !!

[-] 2 points by shadz66 (17985) 1 year ago

Thanx and have you ever heard of 'The State Owned "Bank Of North Dakota ?'

IF NOT, why not d'you think ?

Plus, the same band (one of my favourites!) with their most famous song - 'subverting' David Letterman's show with references to long jailed iconic prisoners : http://www.youtube.com/watch?v=hDkVQvhZx04 !!

fiat justitia ...