Debunking Economics: The Naked Emperor of the Social Sciences (Paperback)

~ (Author) "Why have we handed over the running of the world to economists?..." (more)
Key Phrases: Great Depression, Say's Law, Adam Smith (more...)

Editorial Reviews

Review

... this book is a unique and valuable resource. -- the Ecologist

Keen admits there is no avoiding the difficulties yet he copes admirably with lightening even the stodgiest fare. -- The Ecologist, Vol 31 No 7, September 2001

Keen has considerable analytical skills. It is easy to understand his horror at the contents of modern textbooks. -- Australian Financial Review, November 2, 2001.

Keen mounts a strong economic argument against economic orthodoxy while doing en passant a demolition job on Marxism. -- Campus Review, 23 May 2001 --This text refers to the Hardcover edition.

Review

"... this book is a unique and valuable resource." -- The Ecologist

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Product Details

• Paperback: 352 pages
• Publisher: Zed Books (March 2002)
• Language: English
• ISBN-10: 1856499928
• ISBN-13: 978-1856499927
• Product Dimensions: 9.1 x 6 x 0.9 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (24 customer reviews)
• Amazon.com Sales Rank: #85,114 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

33 of 39 people found the following review helpful:

5.0 out of 5 stars Econ 101, December 11, 2002

By	Professor Joseph L. McCauley "Joseph L. McCauley" (Austria+Texas) - See all my reviews

This review is from: Debunking Economics: The Naked Emperor of the Social Sciences (Hardcover)

This book provides a far more clear explanation of the ideas of standard economic theory (neo-classical economics) than do the standard texts (compare with Samuelson, Mankiw, or Barro, e.g.). The book explains utility maximization, indifference curves, and the assumptions underlying the standard economic model that is used by the IMF, the World Bank and all major western governments. Keen uses simple language that even the lay person can follow. The text should be standard reading for every student of elementary economics, but even an experienced economist like Alan Greenspan might benefit from the clarity of thought displayed therein.

Macroeconomic theory is covered from the right perspective, from the result of Sonnenshein et all which shows the basis in microeconomic theory for the standard macroeconomic model. Kirman is mentioned but his seminal connection of liquidity demand with uncertainty is not discussed. The work of Radner should have been included, but then Samuelson and Varian do not discuss Radner's contribution either.Chapter 7 presents the correct perspective on general equilibrium theory, with good advice for students of econ 101.Chapter 8 on Keynes is outstanding, presenting the clearest (and even correct!) textbook discussion of Keynes that I am aware of. Marx's contribution to the basis of capitalism, the recognition of the central role played by the profit motive, is also made apparent in the Keynsian context. The profit motive is ignored completely in Samuelson and the other standard texts, which discuss merely pure barter economies and leave out financial markets altogether. Hicks' interpretation of Keynes' ideas is also correctly presented. All in all, students of economics would be well advised to make Keen's book their main econ text.

13 of 15 people found the following review helpful:

5.0 out of 5 stars A crucial work for understanding the failures of neoclassical economics, March 4, 2006

By	M. A. Krul (Utrecht, Kingdom of the Netherlands) - See all my reviews (REAL NAME)

For people, like me, who had almost given up entirely on the academic field of Economics because of ridiculous theories and poor teaching, there is fortunately still Steve Keen. In this book, the Australian Keen shows the errors of the standard views of neoclassical (orthodox) economics.

Not just some side aspects of the theory, but the actual core views of economics as it is taught in universities everywhere unravels before your eyes. Keen masterfully applies both economic models and historical analysis to show that orthodox economists not only do not know what theories exist in their own field, but they also have no inkling of the history of economics and what this means for their approach. This, combined with a possibly even poorer understanding of the philosophy of science (Keen uses Milton Friedman as the main example, but more could have been named), leads to a series of ridiculous assumptions and even more ridiculous results. That the economists consistently ignore the way industrial managers and market analysts etc. do NOT apply their pet theories is just the icing on the cake.

The book is heavy reading for those with no knowledge of economics or maths, but certainly not impossible. A basic understanding of economics and mathematics as taught at high school level (at least in The Netherlands) goes a long way, and Keen fortunately writes well and attempts to avoid long mathematical proofs as much as possible.

The only downside to the book is that his treatment of alternative theories, especially the quite closely linked Austrian school of economics, is very short and vague. This leads to the impression that Keen knows what's wrong with neoclassics, but not what is to be done instead. Therefore, start by reading this book, but don't end there.

26 of 34 people found the following review helpful:

5.0 out of 5 stars the myth of TINA dismantled, February 12, 2003

By	R. Hutchinson "autonomeus" (a world ruled by fossil fuels and fossil minds) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)

Keen has accomplished from the inside what many critics have attempted, and that is to decisively reveal the fatal flaws of neoclassical economics. Yes, it's a paper tiger, a giant with feet of clay, a Potempkin Village, or my favorite metaphor -- the thundering Wizard of Oz, which is really a little man behind a curtain. With Keen's book in hand, any professor ought to be able to effectively challenge the ruling TINA orthodoxy that "there is no alternative" to The Market. The supposedly iron laws of supply and demand are not iron after all, there is no One Perfect Equilibrium, so it's back to the political economy that prevailed prior to the "marginal revolution" -- politics matters, institutions matter, and the Masters of the World are nothing but Naked Emperors. Keen offers a section on alternatives, and he favors post-keynesian theory, but is fair to other approaches.

As Keen warns, this is not easy reading, and I can't imagine assigning it to undergraduates. Hopefully some economics professors will (I'm a sociologist). But it should be required reading for every professor and graduate student in the social sciences.