ConservativeHome, Steve Baker MP: The greatest threat to civilisation is not climate change but bad economics

Over at ConservativeHome, I have set out the case that The greatest threat to civilisation is not climate change but bad economics:

Unfortunately, an economic science has grown up which claims to be a positive applied science despite the inability of its practitioners to foresee events such as a massive credit-fuelled boom which caused a bank collapse and recession. I have lost count of the number of articles in which economists have argued about whether circumstances are inflationary or deflationary. If economics were really a positive applied science, they would know and be able to prove their case conclusively. In reality, economists cannot agree whether circumstances are inflationary or deflationary because our money supply depends on bank lending and whether or not banks are lending depends upon individuals’ subjective choices. The extent to which people wish to hold cash balances matters too, but that is also a subjective choice made by millions of individuals.

There is much that is useful in the contemporary mainstream of economics, but I felt it was time for a little polemic.

Please see ConservativeHome for the rest of the article.