Wednesday, January 11, 2017

Freakonomics - the men who started a thinking revolution

In 1984 the New Zealand Labour party came to power espousing a philosphy of neo-classical model based on the monetarist policies of Milton Friedman and the Chicago School. Roger Douglas championed "Economic Rationalism" and there was huge economic change. In my opinion New Zealand came to have a less pleasant outlook largely because of the push to adopt neo-classical economics.

And through the lens of history it is my belief that New Zealand is a society that is much less equal, with the "haves" having done well, and the "have nots" becoming more and more likely to be permanent tenants in their own land. Listening to the Freakonomics podcast about the men who started a thinking revolution was a bitter-sweet listen.  Because their ideas and research more or less proves that the neo-classical economic model pushed by Roger Douglas has fatally flawed assumptions. With the assumption that people make economically rational decisions having been shown to be a load of bunk.  A good listen.  Pity that the information wasn't available more widely 30 years ago.

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