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The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment

13 Pages Posted: 1 Sep 2014 Last revised: 16 Sep 2014

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: September 1, 2014

Abstract

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

Kakarot-Handtke, Egmont, The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment (September 1, 2014). Available at SSRN: https://ssrn.com/abstract=2489792 or http://dx.doi.org/10.2139/ssrn.2489792

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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