Last modified: 2016-06-11
Abstract
In writing this paper I have drawn much inspiration from two recent papers respectively written by Pasinetti (2012) and by Nuti (2013a). In the former, a key reading of the so called Modigliani-Miller theorem is used for interpreting the still ongoing economic crisis in the Western world. Nuti (2013a) makes a suggestive comparison between ‘smoking’ and ‘austerity’, on the ground that austerity, like compulsory smoke, can kill people. He emphasizes, in fact, the irrational persistence of the ‘suicidal policies’ of austerity undertaken up to date in most of the EU countries, despite the increasing theoretical and empirical criticism surrounding them.
There are two intertwined aspects worth emphasizing here: the first one is the supposed close connection between a theoretical framework and some pathological events – as in the case of Pasinetti (2012); the second one is the obstinate persistence of austerity measures despite their fragile foundations (both theoretical and empirical) on which they are supposed to stand – as in the case of Nuti (2013a).
These two aspects may usefully be taken as a starting point for extending and generalizing the suggestions contained in the papers referred to now. It will be argued, in fact, that mainstream (or standard, neoclassical or dominant) economic theory as a whole might be considered as basically crucial to understand, and somehow much ‘responsible’ for, other pathological events. This naturally suggests the possibility of making a critique of mainstream economic theory from a new and different perspective than those usually pursued so far.
Moreover, a critique will be made of mainstream economic theory by arguing that the latter is being characterized by some ‘criminogenic’ features, meaning by this that it contains elements which can be viewed as a potential source of inspiration and justification in committing, though unintentionally, some ‘social crimes’ – the latter intended as those human actions or policies having pernicious consequences to human beings.