THE ECONOMICS OF CRISIS AND THE CRISIS OF ECONOMICS AS SEEN FROM THE US EPICENTER

Abstract

The intertwining of excessive financialization and extreme inequality was undermining the foundations of the US economy prior to the recent crisis. Mainstream economists were unable to recognize the symptoms. This failure was a repetition of economists' prior failures during earlier economic crises. In the midst of these crises, the reputation of economics suffers, but each subsequent recovery revives their reputations and their confidence in the market. The article concludes by showing how a defective conception of capital prevents a proper understanding of economic processes.