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| Thomas L Palley |
Marshall McLuhan, the famed
philosopher of media, wrote “We shape our tools and they in turn shape us”. His
insight also applies to the economy which is shaped by economic policy derived
from economic ideas, and it is the theme of my recent book which argues the
global economic crisis is the product of flawed policies derived from flawed
ideas.
Broadly speaking, there exist
three different perspectives on the crisis. Perspective 1 is the hard-core
neoliberal position, which can be labelled the “government failure
hypothesis”. In the U.S. it is identified with the Republican Party and the
Chicago school of economics.
