Inside the Neo-Liberal Mind Parts 1 and 2

Inside the neoliberal mind part 1 – the rebranding of failure.

March 24, 2015

Troika economists have a problem. It’s huge: cutting wages clearly did not work as intended, which goes against their deepest convictions. In such a situation people tend to rationalize. To quote Goethe: “intelligent people are sharpest when they are… wrong“. Some recent publications enable us to investigate the rationalization process of among others ECB economists.  One of these is a Voxeu piece by Eric Bartelsman (head of the department of economics of the Vrije Universiteit van Amsterdam), Filippo di Mauro (senior advisor in the research department, ECB) and Ettorre Durucci (head of the convergence and competitiveness division, ECB) which clearly shows that cutting wages did not work as intended (see their figure 1). How did they cope with this?
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Posted in Comparative Systems and Constitutions, despotic academia, EPISTEMOLOGY AND SCIENTIFIC METHOD, Full SPECTRA Dominance, Neoclassical and Neo-liberal Economics, Real World Economics | Leave a comment