The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment
13 Pages Posted: 1 Sep 2014 Last revised: 16 Sep 2014
Date Written: September 1, 2014
Axiomatization is the prime task of theoretical economics. Without correct axioms, no correct theory. Without correct theory, no understanding of how the economy works. Without empirically corroborated understanding, no useful economic policy advice. Yet, much more important than any political reputation of economics is indeed: without correct axioms, no acceptance as science. There is no way around it, neither for Orthodoxy nor for Heterodoxy. The conceptual consequence of this paper is to discard the subjective-behavioral axioms and to take objective-structural axioms as the formal point of departure. This enables the rectification of the most fatal analytical mistakes of conventional economics.
Keywords: new framework of concepts, structure-centric, axiom set
JEL Classification: B49, B59, E10
Suggested Citation: Suggested Citation