Written by John Lounsbury
Steve Keen proposes that a fundamental defect in economics starting with Adam Smith is the absence of energy as a required element of production.
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From Prof. Keen’s introduction on YouTube:
Economic theory has failed to incorporate the role of energy in production for two centuries since the Physiocrats. In this video I derive a production function that includes energy in an essential manner. It implies that economic growth has been driven by the increase in the energy throughput capabilities of machinery.
Source: YouTube