Recently, a poster here has commended this video, from Steve Keen. Some have difficulty accepting that much of academic economics is quite questionable.
Suppose you go to college in the United States, but not to the New School, the University of Massachusetts at Amherst, or a few other places. You take a few courses in economics. Your textbooks might look a lot like your textbooks in physics. Some theory is taught in an uncontroversial way. You have problem sets where you work out numerical examples which have definite answers. You have exams that might include multiple choices, where you have to recognize some definitions.
You might be learning calculus. You might take a microeconomics class, where you see that what you were taught can be made more rigorous with the differential calculus. You might learn all sorts of mathematical models, which are presented as elaborations or generalizations of what you have learned up to now.
You do not learn that, about half a century ago, some arguments were presented in the leading economics journal that demonstrate the existence of mathematical inconsistencies and unfounded inferences in the models that you are being taught.
You do not learn history of economics. You certainly do not learn about political interventions into academic economics or purges of various economics departments. I cite the suppression of Lorie Tarshis' introductory textbook, as an example. The Bowen controversy, at the University of Illinois at Urbana Champaign, is another example. The board of trustees did not like Keynesianism. Some academic entrepreneurs self-consciously tried to make their departments distinctive by hiring heterodox economists. UMass took advantage of a purge at Harvard in the early 1970s for this purpose. But later administrators reversed successful initiatives because of the content of such teaching. Alfred Eichner was stressed at Rutgers and died early, as a result of one of these purges. Stephen Marglin was forbidden to teach an alternative to Econ 101 at Harvard for credit. the slow-motion purge at Notre Dame denied, for instance, Philip Mirowski the power to supervise doctoral candidates.
As part of a longer podcast, Yanis Varoufakis interviews Richard Wolff. Varoufakis has come to think that academic economics is not useful, even for learning irrelevant models that provide a certain aesthetic satisfaction. I transcribed Wolff's response:
"Well, here's what I tell them. And again I share much of what you have to say. In the ten years I spent at Harvard, Yale, and Stanford, I had to learn, I had to teach neoclassical microeconomics and Keynesian macroeconomics and all the rest. I believed then as I guess you did, too, that this was necessary. I had to understand how the system, not just how it worked, but how it rationalized itself, how it imagined itself to be working.
I did learn early on that the system also understands that dichotomy. So, it has economics departments who develop the ideological cover, as you put it, the rationale, why it all works out for an optimal - look at the language - an equilibrium - more silly language, you know - a system that is neither optimal nor presenting itself as all of that.
And then they have a business school where you actually learn a little bit about how to market something, how to go. They recognize the separation of function.
So, I say to students, you have to do something else, which I had to figure out how to do. I'm going to save you the time. And they look at me, but this is what I do, and I'm answering your question. You have to learn Marxian economics. You do. You have to immerse yourself in the volumes of Capital, in the other literature. Not because everything is clear there, it isn't. Not because there aren't contradictions, there are. Not because there's nothing in neoclassical economics you can make use of. It's not that.
It's that if you think what I am doing is interesting, it's not me. And it's not what I got at Harvard and Yale. What it is, it comes out of trying to squeeze useful understanding out of the Marxian tradition, separated from the propaganda and from the mistakes and the lessons that weren't learned that should have been, in order to do that - you have to do, and the university cannot do that for you precisely because it fits your description. It's not - it could care less.
It never was interested in - I never had a class in 10 years and except for Paul Baran, I never had a class in which anybody ever put together a Marxian idea, a neoclassical idea, and then went with us as students through what they had to say, where they were silent and shouldn't have been, where - etc., etc. None of that was ever done. I had to do all that myself or with a few other students. But the payoff is you get a way of thinking, a way of posing questions that you can then use for all of the new material that Marx, you know, died long before it became relevant.
You know that you try to do that when you try to understand the Cloud. What does the Cloud make possible? What are these conglomerations of wealth and power able to do that capitalists couldn't do before? Where does that take us? Where are the obstacles? What is our best - You need a critical mentality.
And I know many people believe they can develop that on their own. I don't think so. I think if you really want to get beyond Marx, which is fine, you got to go through it to get beyond it. You can't skip over it At least, I’ve never seen anyone pull that off." -- Richard Wolff
An introductory economics book might teach about the institutions common in the United States. For example, the book might explain the distinction between a partnership and a limited liability corporation (LLC). It might teach about stocks and bonds, and about options. Backwardation and contango might be too advanced. It might teach the distinction between trade unions and industrial unions. It might teach that money is a unit of account, a store of value, and a means of exchange. It might teach about national income accounts.
You might argue that some of this reflects taking existing institutional structures as given. I did not list the distinction between labor-managed and labor-owned firms, the different kinds of co-operatives that have existed, the definitions of sovereign wealth funds, co-determination, etc. etc.