Chic-onomics: ‘value is the new growth!’

…Traditional economics is trapped in 20th century worldview, where the outdated ideology of “global-market utopianism” has replaced reality and theory: Their dogma says “markets are perfect.” They focus narrowly on protecting their “efficient market hypothesis,” with a blind obsession for endless “growth.”

What’s going wrong? Consider a few examples: Skyrocketing CEO pay, tax cuts for the rich, wage stagnation for decades, widening income gap, retirement funding crisis, low market returns, special-interest lobbyists running amok and the rapid growth of Blackstone, Goldman Sachs and other private equity, hedge funds and Wall Street giants.

Next, my eye locked on a fascinating Time article, “Chic-onomics 101,” a review of seven books making economics “sexy” again. In fact, “Freakonomics,” “Blink,” “The World is Flat,” “Nickel & Dimed,” “The Wisdom of Crowds” and “Confessions of an Economic Hitman” are forcing America to “rethink economics … the dismal science.” And one thing’s clear, the outdated 20th century economic theory of unlimited growth is dead.

We need a new theory. Unlimited growth isn’t working. Almost three centuries ago Adam Smith’s “The Wealth of Nations” gave birth to economic science: “More is better” was the mantra, “more” made you happier. But today, “more is too much.” And soon there may be no more.

MarketWatch