The fake Nobel economics prize was part of a ploy to de-democratize control over economic decisions. And it worked!

Another year, another round of Nobel Prizes, and yet another opportunity to remind people that — unlike the other Nobel Prizes — there is no actual Nobel Prize in Economics. There never has been. 

The fake Nobel prize in economics was part of a propaganda ploy hatched in the 1960s by Sweden’s activist central bank to imbue neoclassical (aka neoliberal) economic theories with mainstream credibility and respect. The plan was to give what was in essence a radical political ideology the sheen of a real, hard science — in line with the Nobel prizes in chemistry and physics and biology.

That history is reflected in this year’s winners — two obscure economists working in a very narrow field: a subset of game theory that deals with optimizing auctions. Wow! Wait, auctions? Huh? 

We’re surrounded by oligarchy, austerity, corporate power over every aspect of our lives, environmental destruction on a global scale. And we’re talking designing slightly more efficient auctions? I don’t know about you, but it seems like some seriously narrow-minded accountant-type work given our dire apocalyptic times.

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Demolishing the Lincoln Myth, Yet Again

Extension of slavery in the territories was for Lincoln an entirely different matter, and on this issue he refused all compromise. Here we confront a paradox. If Lincoln thought it more important to preserve the Union than to oppose slavery, why was he unwilling to compromise over slavery in the territories? If he thought slavery’s extension was too high a price to pay to preserve the Union, why was he willing permanently to entrench slavery wherever it already existed? It is hard to detect a moral difference between slavery in the states and the territories.

DiLorenzo readily resolves the paradox. Lincoln opposed extension of slavery, because this would interfere with the prospects of white workers. Lincoln, following his mentor Henry Clay, favored a nationalist economic program of which high tariffs, a national bank, and governmentally financed “internal improvements” were key elements. This program, he thought, would promote not only the interests of the wealthy industrial and financial powers that he always faithfully served but would benefit white labor as well. Blacks, in his opinion, would be better off outside the United States, and throughout his life Lincoln supported schemes for repatriation of blacks to Africa and elsewhere. If blacks left the country, they could not compete with whites, the primary objects of Lincoln’s concern. (Lincoln, by the way, did not see this program as in any way in contradiction to his professed belief that all men are created equal. Blacks, he thought, had human rights but not political rights.)

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