Economic Rationalism: On Throwing out the Bathwater, but Saving the Baby

Tools of Choice for Fighting Recessions

“…It is important that these are realised both because ultimately economic policy is not about increasing efficiency but about increasing the well-being of those in the economy. Also, as Nevile (1994) pointed out, in the long run policies that directly increase efficiency will face a growing and destructive backlash if they take no account of adverse income distribution issues.…”

Faith, works and talents entwined: Driving forces behind John Nevile’s contributions

“…Much economic policy has been predicated on these principles. However, according to John, whether winners actually compensate losers is a political and a moral issue, and economists opt out and forget to tell people (Nevile, 1994(Nevile, , 1998.…”

“…With characteristic balance, John acknowledges that the so-called ‘economic rationalists’ have made a contribution to Australia by turning it from ‘an inward looking country emphasising protection to an export oriented country’ (Nevile, 1994: 42). But he goes on to emphasise ‘that the great bias of economic rationalists against acknowledging market failure leads to flawed policy advice’ and to note the … even more important … widespread tendency of economic rationalists to ignore, or at least downplay the distributional consequences of their policy recommendations.…”

“…But he goes on to emphasise ‘that the great bias of economic rationalists against acknowledging market failure leads to flawed policy advice’ and to note the … even more important … widespread tendency of economic rationalists to ignore, or at least downplay the distributional consequences of their policy recommendations. (Nevile, 1994: 42)…”

“…… even more important … widespread tendency of economic rationalists to ignore, or at least downplay the distributional consequences of their policy recommendations. (Nevile, 1994: 42)…”