Search

The economic crisis of Russia can be overcome only through consistent liberalization of the economy and reduction of the burden of state spending. The criteria for economic security established by Russian economist Sergei Glazev are critically evaluated. Major discrepancies exist between publicly announced data on the state of the Russian economy and society and official data. Using official statistical data, the criteria of economic security Glazev proposed are satisfied for at least eight of the 25 indicators. Data for many countries, both developing and industrialized, are compared.

Economist Kenneth Boulding's philosophy on economic change is primarily ecodynamical rather than evolutionary in content and direction. Thus, Boulding is able to distinguish and dissect fluctuations around a trend but not the long-term trend itself, which is the focus of evolutionary economists. The dichotomy between the two strands of thought on economic change should, however, not lead to mutual exclusivity but cooperation.

John Maynard Keynes, through his landmark book entitled 'General Theory,' influenced succeeding generations of economic thinkers. Keynes' assumptions and conclusions about macroeconomics in that book may no longer hold true in the 1990s but this and other works of his are avidly read by economists interested in the history of economic thought. Keynes foresaw the problem of business cycles and unemployment although he did not have anything to say on inflation. His followers elaborated on his findings, which were based on empirical tests.

John Maynard Keynes' macroeconomic thought has been misinterpreted by many including those who call themselves mainstream Keynesians. Keynes' explanation for unemployment did not point at supply and consequent price imperfections and inflexibility. On the contrary, Keynes focused on the demand side of the equation which, in the case of liquidity, is zero. For him, unemployment will still occur even when prices immediately respond to changes in other determinants.

Economist Thomas Sargent's emphasis of rational expectations in his economic thought arose from his desire to simplify and his use of engineering concepts to describe his theory. Sargent resorted to convenience to explain economic phenomenon which, unfortunately, destroyed the rational aspect of his work. His resort to an engineering frame of mind was also misguided as engineers are implementors and not theorists.

Novel laureate Gary Becker's 'A Treatise on the Family' contains ridiculous assertions because it uses theoretical econometrics to analyze family issues. This is especially evident in Becker's treatment of polygamy versus monogamy where he concludes that polygamy enhances women's position despite evidence that women in societies that practice polygamy are seen as inferior. Other examples of Becker's unrealistic analysis are the definition of altruism and explanation of fertility.

Economists do not like to define their discipline as shaped by the social construction of economic knowledge. As a result, they assume an authoritative position in presenting information as 'conclusions of scientific, detached research' using their own style of 'acceptable rhetoric.' In truth, however, economists' work are not objective because they are built upon their social, personal and political values.

B. Walters and D. Young have criticized post Keynesian economics and claim that it has not been firmly established as a viable option to neoclassical economic orthodoxy. They also argue that it lacks a defined methodology and consensus pertaining to a clear set of founding principles. However, no school of thought is fully coherent, and post Keynesian economics tends toward coherence in that it analyzes the role of effective demand in a monetary production economy.

Economic theorist A. Lindbeck and proponents of New Keynesian economics claim that there are disconnections in J.M. Keynes theory on microfoundations that the latest developments in New Keynesian theory can fill. A scrutiny of his analysis will show that Lindbeck has failed to grasp the microfoundations of Keynes' analysis that are based on concepts developed by A. Marshall. In point of fact, there are at least five basic flaws in Lindbeck's espousal of New Keynesian thought.

Robert L. Heilbroner is one of the most prominent economists in the US. The author of several classic works, including 'The Worldly Philosophers,' 'Nature and Logic of Capitalism,' and 'Between Capitalism and Socialism,' Heilbroner has been a vocal proponent of Keynesian macroeconomic management and has contributed extensively to the public debate over the budget deficit and the federal debt. An admirer of the socialist experiments of Sweden, Heilbroner has actively championed governmental spending and is highly critical of wasteful private spending.