Nice discussion of Philip Mirowski’s Never Let a Serious Crisis Go to Waste here. The first half of the book theorizes neo-liberalism from a Foucaultian perspective and the second half excoriates the economics profession, e.g.
According to Mirowski, there was a moment after the 2008 crash when the economics profession could have performed some rigorous self-criticism and made an honest assessment of what had gone wrong. But the proposed technocratic fixes — addressing the “efficient markets hypothesis” in finance, adding so-called bounded rationality to microeconomic models to make them “behavioral,” and adding various bells and whistles to macroeconomic models — were particularly ineffective in reforming or even clarifying what is going on in financial markets. And the various “explanations” of the crisis that were brought up for debate in mainstream publications and through a network of economic policy “experts” ended up not serving any notion of scientific inquiry but instead were means of deflecting, confusing, and delaying any progress toward uncovering truth or consensus.
So how did the economists get away? According to Mirowski, they are protected through a web of prestige that stretches across the academy to quasi-accountable offices of the government like the Federal Reserve, as well as the network of policy think tanks that provide so-called expertise. This miasma of prestige has become too important to the actual logic of financial capitalism at this moment — elite economics dominates all these important international institutions, and there’s been a subtle wagon-circling at that level. Thus, like the banks, economists themselves are too big to fail.
The whole article is a fascinating read, and shows what a scam neo-liberalism is. It's weird to think that we live in a carny-like reality, where something only succeeds to the extent that a certain number of marks systematically misunderstand how it succeeds.
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