Economic models do not, and never can, fully reflect the extraordinary complexity of human markets. The point is to create useful abstractions to provide decision-makers with a sense of the budgetary and economic impacts of a given policy proposal.
The real culprit here is the diminution of US productive capacity and supply chain disruption caused by four decades of neoliberal policies – disinvestment, deregulation, outsourcing - which have prevented supply-side measures to bring prices down.
It would be tragic if Ukraine defeated Russian neo-imperialism only to yoke itself to Western neoliberalism. While being a Western economic colony is certainly better than being absorbed into a new Russian empire, neither outcome is worthy of the suffering Ukrainians are now enduring.
Human capital theory cannot solve our economic woes. It’s time to tell the truth of how we got here and how we can move forward. Replacing human capital theory with a socialist theory of education and collective intelligence would be a good start.
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