"To summarize: in both Marxist and neoclassical worlds, an economy composed of highly automated sector only is incompatible with the maintenance of capitalism. In one case because the produced surplus value and thus profit is zero; in the other case, because insufficient aggregate demand leads to profits of zero. The situation can be “saved” only by an equivalent rise of a labor-intensive sector or by massive redistribution to people who do not work.

Thus, we see less dismal future for labor that some people argue. Activities where labor cannot be substituted by the AI will blossom. Will AI bring an overall deskilling of labor or not? At first sight, it seems that the AI will lead to deskilling of labor simply because many skills (such as computing, software development, writing, even math) will be redundant as they may be taken over by machines. Yet, this process may be, and is likely to be, counterbalanced by the creation of occupations where labor skills will exceed today’s level simply because they would have to be superior to the skill levels produced by the AI in order for people to want to purchase such products and services. Therefore, while one part of the labor force may suffer from deskilling, or to call it frankly, from the dumbing-down, another part of the labor force will get more sophisticated and much more skilled. To stay ahead it will have to compete with machines more than with the other humans. But so long as we believe in human adaptation, we can think that there would be always a segment of such labor that would do things that the machines cannot do, or even where the same output is produced by both, it will more appreciated (and hence more valued) if done by live labor rather than by the AI. An AI-generated equally beautiful ice-skater is unlikely to be as much appreciated as a human ice-skater. At least, by the humans."

https://branko2f7.substack.com/p/artificial-intelligence-and-future

#AI #Economics #PoliticalEconomy #GenerativeAI #Marx #Marxism #NeoclassicalEconomics

It sounds like #GregJericho is about to throw in the towel and give up any hope that the #RBA will mend its ways and hence forecasts a #Recession… eventually.

“At least the impact is not as large as it was in 2022 and 2023 when profits soared after Russia invaded Ukraine, causing oil, gas and fertiliser prices to spike.

Good thing nothing like that has happened recently … oh wait, I am being handed a note.

And so, we wait to see the damage in the March figures and know that, regardless of the cause of inflation, the RBA is likely to blame workers – and they will hold to that view even if it means a recession.”

Read the article here:
https://www.theguardian.com/business/grogonomics/2026/mar/26/australia-inflation-profit-margins-fuel-crisis-supply-chain-shock
#AusPol #Economy #Inflation #NeoClassicalEconomics

Prof Richard Murphy asks a number of question in this short blog, the central one being :’…who is asking where the money is coming from?’ And the others follow on from that one.

It is a very short read, but a telling one for #MMT and perhaps a calling out of all the hypocrites and their economic dogma.

#EconomicTheory #NeoClassicalEconomics #EconomicBigortry #antifa #EatTheRich

https://www.taxresearch.org.uk/Blog/2026/03/02/are-we-all-modern-monetary-theorists-when-the-chips-are-down/

I never get tired of tooting #GregJericho ‘s articles, because what he says, most of the time, is not just informative, it’s a booster shot against the #FakeNews and #EconomicMisInformation the #msm spews out — unfortunately with that much misinformation being the main narrative of all but a few news outlets and the #FifthEstate, a lot of it is bound to be believed as truth: like the furphy about increasing wages driving up inflation — everyone should know by now the inflationary dragon is #GreedFlation.

“There hasn’t been a wage breakout since I was in primary school but do not worry – the RBA is still on the watch, ever on alert to raise interest rates in an effort to increase unemployment and lower wage growth.”
Read more:
https://www.theguardian.com/business/grogonomics/2026/feb/18/real-wages-fall-australia-workers-economy

But the RBA is not about to let a debuked economic theory go to waste. So Greg is warning us of another rate rise likely to come if the RBA stays true to form — and why shouldn’t it?

Read more:
https://thepoint.com.au/opinions/260220-dont-panic-rba-low-unemployment-is-a-good-thing

#RBA #NeoClassicalEconomics #NeoLiberalEconomics #AusPol #CashRate #Inflation #WageGrowth

With regard to intellectual diversity on campus, departments of economics tend not to be shining examples .

#HigherEducation #USUniversities #Economics #NeoclassicalEconomics #IntellectualDiversity

Ha-Joon Chang is totally right. Economics is heading towards total irrelevance - mostly because it has severed all ties with political science and the study of power.

"Neoclassical economics has become the Aeroflot of ideas. A friend recalls that after asking for a vegetarian meal on a flight with the Soviet airline in the 1980s, he was told: “No, you cannot. Everybody’s equal on Aeroflot. It’s a socialist airline. There’s no special treatment.” The same logic applies in today’s economics departments: you’re free to choose — as long as it’s neoclassical chicken.

But real life is not one-size-fits-all. The complex challenges of our time require imaginative solutions, not endless variations on the failed theme of efficient markets. We need a more nuanced approach and to understand the economy not from a purely economic point of view, but also from political, social and psychological perspectives. Reforming economics curricula is not an academic distraction — it’s a societal imperative. 

We need to push for an economics education that is more pluralist, ethically aware, historically grounded and relevant to the real world.
(...)
While we can expect further dismissals from the discipline’s high priests, we also know that they are on the defensive. The cracks are showing and the demand for change is growing. Even the staunchest defenders of orthodoxy will eventually have to listen. 

I remain an optimist. Two hundred years ago, buying and selling people was legal in many countries. A hundred years ago, women were jailed for demanding the right to vote. Progress never comes easily. You can’t simply hope that societies will evolve in the right direction. You have to fight to change them."

https://www.ft.com/content/9aabb4a9-d896-4b4c-a40a-1c4477a47a29 

#Economics #SocialSciences #NeoclassicalEconomics #Capitalism #Neoliberalism

Why Neoclassical Economics Fails – A Deep Dive
#EconomicJustice, #FinancialCrisis, #NeoclassicalEconomics, #PolicyReform

Mainstream economics is flawed. Discover why neoclassical economics fails and how alternative models offer real-world solutions.

https://socialjusticeaustralia.com.au/why-neoclassical-economics-fails/

It's fascinating to hear Michael Beckley misunderstand China, despite being well-informed on the raw facts. Because he's trying to cram those facts into a one-size-fits-all neoclassical economic frame. It simply doesn't fit a country with a totally different political-economic system from the US, and a massive, diverse territory with a huge population.

https://opentodebate.org/debate/has-chinas-power-peaked/

(1/?)

#podcasts #OpenToDebate #China #NeoClassicalEconomics