(Conversation recorded on December 14th, 2023)

Show Summary:

On this episode, economist Steve Keen offers a deep forensic history of why modern economic theory has neglected the role of energy in productivity - and why this “Energy Blindness” is now a major blindspot in how our culture views the present - and the future. The massive, temporary carbon surplus we’ve extracted over the last few centuries has resulted in an exponential increase in the standard of living for many. This explosion of global economic growth also happened to coincide with the development of all modern economic theories and formulas, leading to a core misunderstanding in the way our economies are powered. How have technology and innovation been used to cover up the role of a growing energy supply in the last century of rising prosperity? In the midst of discussions between value and labor, where does energy really fit into the equation? Where do we go once we understand the true role of energy in our economy - and will we have the ability to reshape economic policies to be in line with our energy realities?

About Steve Keen:

Steve Keen is an economist, author of Debunking Economics and The New Economics: A Manifesto. His new book, Rebuilding Economics from the Top Down, will be released in 2024. He is a Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London. Steve was one of the handful of economists to realize that a serious economic crisis was imminent, and to publicly warn of it from as early as December 2005. This, and his pioneering work on modeling debt-deflation, resulted in him winning the Revere Award from the Real World Economics Review.

Listen to Steve Keen's previous episode here: https://youtu.be/_Q23wwyksdY
Watch Steve Keen on Reality Roundtable #3 here: https://youtu.be/EC11UQD9q3w

For Show Notes and More: https://www.thegreatsimplification.com/episode/108-steve-keen

0:00 - Intro
3:52 - The Physiocrats
9:33 - Adam Smith
15:09 - Karl Marx
19:09 - Proto-Neoclassical Economists
22:53 - The Neoclassical Takeover
27:50 - The Introduction of Math
36:46 - New Classical Economists
38:43 - Robert Solow
50:50 - Ayres, Kummel, and Energy
56:28 - The Neoclassical Defense
1:02:53 - The Truth About Energy
1:06:21 - A Message to Young Economists
1:14:07 - A Message to All Grad Students
1:16:44 - The Flame and The Machine
1:22:29 - Big Picture Implications
1:29:49 - Steve’s New Book
1:30:25 - Closing Thoughts

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