Debunking Economics - the podcast

Milton Friedman influenced a generation of politicians, turning them from Keynesian economics to a more free-market way of doing things. Margaret Thatcher described him an intellectual freedom fighter. In this edition of the Debunking Economics podcast Steve Keen debunks the Friedman approach to capitalism and Phil Dobbie suggests one politician who has abandoned the approach, because he has incre...

The world’s population is growing – and we seem to be feeling it a bit in almost every part of the world – some more than most. But could the population in some countries, like Australia for example, actually be too small … would the economy work better if there were more people in it. Phil Dobbie asks Prof Steve Keen if a small population hinders competition and economic efficiency? Notwiths...

Did your mum and dad teach you to save money rather than borrow? It was better to have cash than be in debt. Yet the whole approach to money has turned on its head. We don’t save as much as we used to. In fact, we borrow to invest. It’s a generational change. In this week’s podcast Phil Dobbie asks Steve Keen whether it’s something we should worry about. And is it any surprise we don’t save, when...

Are we trying to apply theory developed for production-based economies, on economies driven by knowledge? It’s worse than that, Steve Keen tells Phil Dobbie. The theories around production were wrong in the first place, because of flawed assumptions on marginal productivity. It just gets messier when you’re dealing with digital products and a knowledge-based economy. Hosted on Acast. See acast.com...

The European economy seems to have found itself in sharp reverse, possibly heading into a continent-wide recession. Italy is already there, Greece has witnessed thousands leaving the country to find jobs, and the yellow vest protests show happy unhappy the French are. Then there’s Brexit, of course. In this edition of the Debunking Economics podcast, Phil Dobbie asks Prof Steve Keen how much we ca...

There’s a theory, in many conventional government and economic circles, that lowering capital gains tax will increase investment. By taxing capital gains at less than income tax it encourages risk taking and entrepreneurship, which spurs economic growth. Phil Dobbie asks Prof Steve Keen whether that argument have any credibility or is it nothing more than a tax dodge? Hosted on Acast. See acast.co...

Back in the forties Dutch economist Petrus Johannes Verdoorn argued that people became more productive when the economy was booming. Conversely, austerity hinders productivity. In this edition of the Debunking Economics Podcast Phil Dobbie asks Prof Steve Keen if there is any evidence to support Verdoorn’s assertion. They discuss the role of demand, fiscal stimulus and mechanisation in economic gr...

Theresa May has been busy setting rules on UK migration after Brexit. Freedom of movement was, of course, one of the contentious issues that led to Brexit in the first place. In this week’s Debunking Economics Podcast Phil Dobbie talks to Prof Steve Keen about the pros and cons of migration, where you draw the line and policies to manage it. Hosted on Acast. See acast.com/privacy for more informat...

Fintech companies are all chomping at the bit to take market share away from banks. Right now they’re making inroads on services like currency transfers, but will they ever extend to offering full service banking, including lending. Unlikely, says Steve Keen, because banks use money creation to make profits. But, Phil Dobbie asks, if cryptocurrencies can be created from nothing, what's to stop oth...

Banks were bailed out during the financial crisis in 2008. In the US the Treasury bought billions in mortgage backed securities. In the UK half a trillion pounds was allocated to a bank rescue package. The government took a 58 percent stake in RBS and remains a significant shareholder to this day. The industry that paid fat cat salaries through dodgy loans was saved by taxpayers. So, as long as th...

House prices have started to fall in Australia. In Sydney they’ve fallen 10 percent in a year – Steve Keen isn’t alone in predicting they’ll fall as much again, at least. He tells Phil Dobbie that we’re already seeing the consequences of the fall, with Australian GDP falling. But will it lead to a recession. Could the consequences really be called a crisis, or will the economy absorb the shock? An...

One for our listeners, Pieter Verhoeven, suggested we look at steady state economics and the post-growth economy. Can society continue to prosper without the need, or ability, for economic growth. Since the late sixties the Club of Rome has been arguing that we will need to curb growth or deplete the world’s resources. How would we adapt. Phil points to changes made to use resources more effective...

According to NASA ninety-seven percent of climate scientists believe that climate change is the result of human activities. Only one US President doesn’t agree, denying that climate change even exists. But a group of central bankers met recently to decide whether they had a role to play in fixing the mess we’re making of the planet. In today’s Debunking Economics podcast Phil Dobbie asks Prof...

In the UK we’ve privatised the railways, coach companies, the banks, power, airports, Royal Mail, water, BNT, car companies – there’s not much left to sell. But how are these privatised companies working out for us? Phil Dobbie talks to Prof Steve Keen about the arguments for and against privatisation. Obviously, too much in state hands is also problematic – so where is the happy compromise? Hoste...

Multinationals have an uncanny ability to avoid tax. In this edition, Phil Dobbie and Steve Keen talk about how big corporates use transfer pricing to pay the least tax possible, and attempts to try and get them to pay the right amount. But where should the tax be applied – where products are made or where they are consumed. At the moment, it’s often somewhere in central America. Perhaps moves lik...

President Trump looks set to step up the tariff battle against China as he embarks on the fruitless task of eradicating their $380 billion trade deficit. With no peace talks on the horizon its very likely his administration will impose a 25% tariff on all Chinese imports. Meanwhile, we’ve seen the US dollar reach multi-year highs, the Renminbi falling to new lows and the Chinese stock exchange she...

John McDonnell has proposed that all companies over a certain size would be required to transfer equity into an inclusive ownership fund, which would issue shares to people working for that company. So, is this a good idea? Will it make companies more effective, or is it an example of extreme socialism. Steve Keen says its as socialist as Germany. Hosted on Acast. See acast.com/privacy for more in...

A few weeks back Jean Claude Juncker suggested that the Euro should be established as a reserve currency to challenge the reliance on the US dollar. In this podcast, Phil Dobbie asks Prof Steve Keen if there is a realistic chance of that ever happening, and why did the US dollar become the reserve currency in the first place? Given that Steve is not a supporter of the Euro, because its existence d...

Today William D Nordhaus and Paul Romer were announced as joint winners of the Noble Prize for Economic Science. Yes, science! Neither would qualify for the profession's newest award, to be launched next year, simultaneous to the Noble award ceremony. In this podcast Professor Steve Keen talks to Phil Dobbie about the launch of the ‘Nobble Prize for Economics’ for those with barking mad assumption...

It’s often argued, by politicians and business owners, that higher wages cut into company profits, which is bad for the economy. Yet, lower wages cuts spending, and that’s worse for the economy. In this podcast Phil Dobbie asks how much more productive the economy would be if we saw a smaller difference between low wage earners and the filthy rich. Hosted on Acast. See acast.com/privacy for more i...

One of the reasons people voted for Brexit was to “take control of our borders”. Around the world, western leaders are echoing a similar message. It seems migrants are viewed more as a drain on resources than a boost to the economic output of a country. At the other end of the spectrum, there are some who argue that the world should have complete labour mobility and, if people could live where the...

A new law in New Zealand prevents foreign buyers from acquiring homes in there. It’s a response to rising house prices which, the government claims, is being driven by New Zealanders being outbid by people from overseas. Home ownership in New Zealand is now at its lowest level since 1951. So, will the plan work? Phil Dobbie asks Prof Steve Keen. Hosted on Acast. See acast.com/privacy for more info...

The spread of yield between short and long term US Treasuries is narrowing. It could even invert, meaning the yield is higher on short term Treasuries than long dated ones. This is precisely what happened prior to every US recession – so does that mean another is on the way. A listener to the podcast wrote asking why yield curve inversion is such a reliable indicator of recession, if indeed it is?...

Robinson Crusoe lives on a desert island with Man Friday. There’s no need for money. But then Woman Saturday comes along, selling goods that both men want to acquire, and they devise the concept of money, which she quickly grabs the lions share of. Next, they discover a large village on the other side of the island. How does that change the value of their three-person economy when they introduce a...

He is running the only country in the G7 to see economic growth accelerate right now. His followers support him however much mud is slung his way. World leaders seem to be know towing to his demands for better trade deals, even though some would argue it smacks of protectionism. So, is Donald Trump doing a good job for America. In this edition of the Debunking Economics podcast Professor Steve Kee...