[p2p-research] Scientific American: Does Economics Violate the Laws of Physics?

[Ryan Lanham]

Hi Stan:

I actually did a bit more looking and find their approach very along lines
long held by industrial ecologists at places like Yale that I admire.  In
fact, I'd call it the same.  It is sensationalistic as presented by SA, but
I tend to agree with them.  I think there is a reasonable argument to be
made that economics is ultimately a study of thermodynamics and that
neoclassical growth theories are simply wrong--scientifically.  Classical
technocrats have made this argument since the 1930s (though they've suffered
their share of outliers, too.  The ideas these guys are discussing aren't
new so far as I can tell.

On the other hand, Superfreakanomics is out now and the excerpts I have read
are truly laughable on climate change.  It is ridiculously bad science
policy and even worse economics.  Paul Krugman called the economics in it
"simply wrong."  And the major scientist they quote says he was misquoted
and categorically disagrees with the book's presentation of his views and
their findings--and rebutted it in an interview with Yale360, not exactly a
dodgy forum for rebuttle.  Climate Progress blog (which is often over the
top in its own way) has a lot on it.  Interesting time in economics.

Ryan

On Wed, Oct 28, 2009 at 3:27 PM, Stan Rhodes <stanleyrhodes at gmail.com>wrote:

> I read this before, and was amazed at how confused it was.  Reading it
> again, I just think it's sensationalist nonsense.
>
> 1) Neoclassical theory and the resulting neoclassical synthesis, by any
> stretch of the imagination, does NOT "violate the laws of physics" or "the
> laws of thermodynamics."
> 2) Peak oil, coal, and gas are not news to even "mainstream" "Chicago
> economists."
> 3) Energy is but one aspect of economics.  "Biophysical economists" ignore
> the most important aspect: behavioral science, specifically, psychology +
> sociology + anthropology.  That's the hard part, and the part that's vital
> for creating or modifying multi-level systems that manage and sustain common
> pool resources.
>
> "Of course I'm trying to send a message," said Joseph Tainter, chairman of
> Utah State University's Department of Environment and Society. "I just don't
> expect there's anyone out there to receive it."
>
> That sort of schlock is fine for The Huffington Post, but Scientific
> American ought to be ashamed.
>
> -- Stan
>  On Wed, Oct 28, 2009 at 12:13 PM, Ryan Lanham <rlanham1963 at gmail.com>wrote:
>
>> http://www.scientificamerican.com/article.cfm?id=does-economics-violate-th
>>
>> --
>> Ryan
>>
>>
>>
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-- 
Ryan Lanham
rlanham1963 at gmail.com
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