Modern history is largely driven by the battle of the rich (top 0.01%) against the masses (bottom 90%). Over the past few decades, the rich have been tremendously successful in having it all their way. A previous blog post on “Deception and Democracy” illustrates by examples their successful conversion of democracy into plutocracy in the USA. As pointed out by Polanyi, unregulated markets create disastrous outcomes for the majority. Therefore, in a democratic environment, theories which misrepresent facts and justify massive inequalities are essential pillars of support for the plutocrats. Spreading these theories via media and educational channels helps create an environment where people support policies which go against their common interests.
As many posts on austerity on the RWER blog have shown, austerity has only caused massive damages to the European Union (just search for “austerity” on the blog). Theories which support austerity as a policy are disseminated by premier educational institutions and provide a crucial pillar of support for enforcing such policies. Equally, educating the public about the flaws of such policies and providing a viable alternative is an essential element of a counter-attack. Ellen Brown has performed a tremendous service with her books “From Austerity to Prosperity: The Public Bank Solution” and also “Web of Debt: The Shocking Truth about our Monetary System and how we can break free.” I have tried to pick up certain key insights from these books and summarized them as a solution to development problems in Islamic economies in my paper: “On the Nature of Modern Money.” However this paper is lengthy and complex, and meant for a professional audience. My newspaper article “Keynes vs. IMF” presents a brief and oversimplified version of some of the key ideas the public needs to learn, in order to be able to overcome the illusion that austerity is good for them.
An important point here is that the real world economists need to take their case to the public, which is victimized by the neoclassical economists. Talking among ourselves is not helpful except in terms of discovering the strongest arguments and best lines of attack. There is absolutely no point in trying to get published in leading journals, or trying to change minds of professional economists – they have the most to lose. Our natural audience are those who have the most to gain by listening to our message. This means that we need to make much greater efforts to convey our message to the general public. This involves participating more on popular forums like conventional blogs, writing book reviews for good books, providing critiques and alternatives for bad ones, writing for newspapers etc. It also involves making the efforts required to translate and present our theories and models in ways attractive and comprehensible to a general audience.