#134 - Steve Keen - How Modern Economics Became Ideology

Modern economics is built on competing theories that often describe the world in very different ways. In this conversation, economist Steve Keen sets out his explanation for how money works, why he believes mainstream economic models fail, and why debt, banking and housing play a far greater role in economic crises than most policymakers acknowledge. Keen's perspective challenges the assumptions of neoclassical, Keynesian and Austrian economists alike. In this episode we discuss: – How economics became political ideology – Why neoclassical theory broke the West – The Left vs Right illusion in economic policy – What money really is (and how banks actually create it) – Why inflation is misunderstood by almost everyone – How private debt fuels instability and inequality – Housing, mortgages & the destruction of the middle class – Why equilibrium economics is fantasy – What a sane, reality-based economic model looks like – How young people can survive a debt-driven system Economics didn't fail by accident — it failed because ideology replaced reality. Steve Keen is one of the world's leading heterodox economists, known for his critiques of mainstream theory and his work on private debt, banking, financial instability and the 2008 crisis, which he warned about years in advance. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - TIMESTAMPS: 00:00:00 – Introduction  00:03:12 – Why Economics Became Ideology   00:09:04 – Economists vs Reality   00:14:47 – How Money Actually Works   00:21:18 – Banks, Loans & Money Creation     00:33:44 – Inflation: What Really Drives It   00:38:59 – Wages, Markups & Bargaining Power     00:47:55 – The Housing Crisis Explained   00:54:03 – Deregulation & the Death of Affordability   00:59:22 – Middle Class Collapse   01:04:48 – Left and Right Get Economics Wrong   01:11:02 – Neoclassical Economics 01:17:26 – The Problem With Economic Models   01:22:31 – Why Economists Misunderstand Production   01:28:08 – AI, Automation & The Future of Work      01:44:28 – Structural Failures    01:55:46 – Can Government Use Good Economics?   02:01:23 – Global Debt, Fragility & Future Crises   02:06:40 – What Would Real Reform Look Like?   02:13:28 – Why Young Generations Feel Hopeless   02:19:47 – Can We Build a Post-Ideological Economics?   02:25:10 – Final Thoughts   - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CONTACT PETE › Website – http://petermccormack.com › Feedback – https://www.petermccormack.com/contact › Email – [email protected] › Instagram – /mccormack555 › X/Twitter – https://x.com/petermccormack/ CONNECT WITH STEVE KEEN › Website – https://www.patreon.com/ProfSteveKeen › Twitter – https://x.com/profstevekeen SPONSORS › IREN - https://www.iren.com/ › Ledger - https://www.ledger.com/ › Gemini - https://gemini.com/ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - LISTEN / SUBSCRIBE › Apple Podcasts: https://apple.co/40ruY9K › Spotify: https://spoti.fi/3Wc94Vu › Fountain: https://bit.ly/FountainPM › YouTube: https://bit.ly/YouTube_PM › Rumble: https://bit.ly/RumblePM FILMED BY CURTIS TAYLOR › https://www.curttaylor.co.uk/ › https://x.com/curttayloruk/ EDITED BY CONOR MCCORMACK › https://x.com/ConorM04 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -