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Subtitle: How Darwin and the doctor of King
Charles I could turn economics into a science, Hartman House, Hampshire, U.K.,
2014, 204 pgs., index, bibliography, graphs
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The author expands on his previous book, The Origin of Financial Crises,
in
which he claimed that the 'Efficient Market Theory' is a fallacy to claim that
the entire economics profession (or most of it) is based on fallacy. In part I
of this book the author selected several real scientists whose revolutionary
theories completely altered human thinking. In part II he proposes that current
diverse theories about economics are due to a 'paradigm shift', if only people
would pay attention. His point is that the current diversity of opinions about
the central and fundamental theories about economics is a symptom of the field
being in a chaos typical of a time in which its basic paradigm is in flux. He
proposes to offer a new paradigm. He draws on Kuhn's observations about such
shifts in the underlying paradigm that takes the place of a previous one as
scientists reluctantly accept the evidence they can no longer refute.
The author provides imaginative methods to clarify his concepts, especially the
use of graphics to compare the thinking on two main economics theories that are
basic to some of the main 'schools' of economic theory today. But his summary
is superficial - 1 he only includes a few of the main Western economists - 2 -
he only depicts two 'economic' variables (belief that markets are stable or not
on the X axis and belief in the importance and value of government intervention
on the Y axis. And 3 - he ignores the two underlying failures of by far most of
the economist profession (understanding of the origin, nature and purpose of
money - and belief that economic behavior is an end in itself rather than only
a means).
The original source of the problems in economic theory that Mr. Cooper
identifies was the creation of this 'economic man' and divorce of the study of
economics from politics and social life. And he joins the dominant economists
in largely ignoring the nature of money. He basis his analysis on Thomas Kuhn's
concept about scientific progress occurring as a result of occasional
'revolutions' in which a dominant 'paradigm ' is replaced after considerable
struggle by a new one. But those two theories are central to the current
economic paradigm.
More comments below.
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Thomas S. Kuhn - The Structure of
Scientific Revolutions
This is a very enlightening and important book, not only for the author's
analysis of the development of science but also for the application of his
concept of the role of 'paradigms' (meaning theories at the level of a 'world
view') in the development of other intellectual endeavors.
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Lawrence H. White - The Clash of Economic
Ideas: The Great Policy Debates and Experiments of the Last Hundred Years.
Dr. White wrote a straight-forward description and analysis of the 20th - 21st
century's contentious arguments over the entire range of economic topics
without, apparently, intending to call the entire discussion in question.
Reading his book I was reminded of the Scholastic's arguments between clerics
at Universities of Paris and Cambridge - Today's economists are 'secular
theologians'. His book provides the professional texts that support George
Cooper's assessment.
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1. - Introduction: The Broken Science
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Part I Science
2. Scientific Revolutions
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3. - A Crisis in the Heavens
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4. - Blood and Bacon
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5. - Darwin's Theory of Species
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6. - Continents and Revolutions
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Part II - Economics
7. - Economics - Ripe for Revolution
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8. - Borrowing from Mr. Darwin
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9 - The Paradigm Shift
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10 - Policy Implications
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Michael K. Salemi - Money and Banking:
What Everyone Should Know - The Great Courses, Chantilly Virginia
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George Gilder - The Scandal of Money: Why
Wall Street Recovers but the Economy Never Does, Regnery, Washington D.C.
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L Randall Wray - Modern Money Theory
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Jacob Goldstein - Money, The True Story of
a made-up Thing
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Martin A. Armstrong A Brief History of
World Credit & Interest Rates
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Peter Bernholz - Monetary Regimes and
Inflation: History, Economics and Politial Relationships
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