THE FAILURE OF ECONOMICS

The Covid-19 virus pandemic has shown the free market/globalised/neoliberal/capitalist system has proven its fragility and failure. Emergency actions are socialistic and elements of the command economy. Science (scientia= knowledge) is proven knowledge (proven=tested) that is supported by well established facts, replicated, tested by falsification attempts. Economics is proven to fail as a science. Even the most basic assumption (much used by economic dogma), the supply/demand criss-cross fails to be supported by actual data and replication. Economics has the features of a religion; required beliefs & rejected beliefs; dogma (equilibrium), cults and apostates.
What to fund for recovery? To protect NZ our borders will be basically closed. Money nowadays is just a form of accounting numbers and already numbers have been created to keep people functioning. Banks create money numbers for their benefit, the government (the people’s collective) should have the sole function of creating money accounting numbers. These should be shared equitably with no extremes of poverty or excess. To start functioning again, new numbers can be created but real physical resources will be needed, physical capital (machines tools, factories, plants, equipment) that are still usable. The share market numbers that have tanked are irrelevant, the physical capital remains. Energy is a very necessary factor of production that is ignored and misunderstood by economists. Fortunately we have a survivable supply system. We have land/soil resources that can supply our essential food (and wool for clothes). We have a supply of healthy people that can work these resources together to satisfy our essential needs. They form what can be done, not the accounting numbers.
The failures of the dominant capitalist system have been exposed. We are aware of the failure of the other extreme of a command economy (communism?) Which also produces an elite with excessive power and wealth. We know that too little and too much is bad for people (eg salt, water, alcohol, drugs, …) So we need a new system with just enough of such needs. But if we must have an equitable and ethical system that values human life, we will need to democratise workplace activities as the selfish dominating capitalist elite which has created an inequitable/failed result scientifically proving a theory/hypothesis failure requiring a new rather than a patched up/modified system.

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