Economics Confronts The Economy

‘To break the mind-numbing, stupefying grip of the neoclassical elite and make economics important once again is Klein’s dream; and the dream is important because the past and present use of neoclassical economics has imposed untold hardship upon millions. The way forward he suggests is to go down the theoretical road of heterodox economics.’
– Frederic S. Lee, Journal of Economic Issues

‘Phil Klein, in a low key but deeply reasoned text, critiques economic theory for its misrepresentations of the economy and other shortcomings. In particular, Klein provides a critique of how mainstream economists – creating a corpus of doctrines that seem “quantitative, precise, logical, elegant, rigorous, and beautiful” – have made more of Adam Smith’s “invisible hand” than did Smith himself. Some will agree and others will disagree with various of Klein’s arguments. But all economists, and the discipline itself, will be better off if individual economists will diagnose WHY they agree and disagree, and both the bases and the implications thereof.’
– Warren Samuels, Michigan State University, US

‘I believe it to be a most significant contribution to a continuing assessment of the heartland of orthodox economic theory and its policy applications. I consider this volume to be the most pertinent and significant contribution of the last decade for the necessary and continuing critique of the relevance and applicability of mainstream neoclassical economic analysis. Professor Klein considers at length the substantive character and relevance of neoclassical orthodoxy as continuing futile efforts are made to salvage its contents and preserve its dominion as the encompassing discipline. He explores its trivialization; he examines its distorted views of the public sector; he laments its overly extensive deference to mathematical expression; he disputes its claim to dominion and exclusive relevance as an inquiry approach for the study of the economic process. In the concluding chapter he presents his persuasive alternative view of what a non-ideological, non-mathematical, but pertinent mode of economic inquiry would encompass.’
– Marc R. Tool, California State University, Sacramento, US

Economics Confronts the Economy is a challenging and unorthodox look at contemporary economic analysis. Philip Klein presents a highly reasoned and yet personal view of the state of economics today. While his views may be contentious to some, it is an accessible book that will provoke discussion and debate to a wide readership.

Professor Klein begins with the assumption that the basic function of economic theory is to provide a sound guide for public policy in assisting society in defining what it means by ‘economic progress’. In the words of Thorstein Veblen it involves economic activity as explicit steps to be taken at any given time to enable the economy to play its most effective role in ‘enhancing human life’. The book argues that modern mainstream economics is failing in this task in terms of what it teaches young economists, what it contributes to public policy debates and what it has done to the field of economics.

This book will have a wide audience throughout the many and varied fields of economics including heterodox economics, micro- and macroeconomics, history of economic thought and economic policy.