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Analysis

Steve Keen: Why Economics is Bunk

Analysis

BBC

News, Politics

4.61K Ratings

🗓️ 4 June 2012

⏱️ 29 minutes

🧾️ Download transcript

Summary

Newsnight Economics Editor Paul Mason interviews the controversial economist Steve Keen before an audience at the London School of Economics.

Prof Keen was one of a small number of economists who predicted there would be a major financial crisis before the 2008 crash.

He argues that if we keep the "parasitic banking sector" alive then the economy will die, and says that conventional economics provides an unwitting cover for "the greatest ponzi schemes in history".

Producer: Kavita Puri.

Transcript

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0:00.0

Just before this BBC podcast gets underway, here's something you may not know.

0:04.7

My name's Linda Davies and I Commission Podcasts for BBC Sounds.

0:08.5

As you'd expect, at the BBC we make podcasts of the very highest quality featuring the most knowledgeable experts and genuinely engaging voices.

0:18.0

What you may not know is that the BBC makes podcasts about all kinds of things like pop stars,

0:24.6

poltergeist, cricket, and conspiracy theories and that's just a few examples.

0:29.7

If you'd like to discover something a little bit unexpected, find your next podcast over at BBC Sounds.

0:36.0

Thank you for downloading Analysis, the radio program about the ideas that shape the world.

0:42.0

This week's program comes from the London School of

0:44.8

Economics where Professor Steve Keene talks to Newsnight's economics editor Paul Mason

0:50.4

about how he saw the financial crisis coming.

0:53.0

Good evening and welcome to the old theatre at the London School of Economics.

1:02.8

I'm Paul Mason here with a packed audience.

1:05.5

In this week's edition of analysis,

1:07.1

I'll be talking to Steve Keen about his claim

1:09.2

that if we keep the parasitic banking sector alive,

1:12.3

the economy dies.

1:14.4

Steve Keene is professor of economics and finance at the University of Western Sydney in Australia

1:19.6

and has a cult following among critics of mainstream economics. He was one of a small

1:24.9

number of economists who put their reputations on the line before the collapse of Lehman

1:29.0

Brothers and predicted there would be a major financial crisis. In his recently updated book debunking economics,

1:36.3

the naked emperor dethroned, he argues that much of what is taught here at the LSC and other major institutions is, to put it politely, flawed, and not only flawed,

1:47.0

but helped cause and accentuate the impact of the crash.

...

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