Economic Fantasies can Hold Us Hostage. Let’s run through the greatest hits from Econ 101 — and why they deserve early retirement.
1.
Myth: The Environment Is Outside the Economy
Reality: The economy is a wholly owned subsidiary of the biosphere.
Most models treat nature like a free buffet that magically restocks itself. In reality, everything — from iPhones to ice cream — starts with ecological inputs. No clean water, no economy. No bees, no food. No climate stability, no civilization.
Ignoring this is like deleting your own oxygen supply because it’s not “on budget.”
2.
Myth: Markets Are Self-Correcting
Reality: Markets are great at selling you stuff. Not so great at protecting your grandchildren.
Sure, markets are efficient at matching buyers and sellers — but they’re also remarkably efficient at melting ice caps, concentrating wealth, and turning rainforests into soybeans. Left unchecked, the market doesn’t solve problems — it privatizes them.
The “invisible hand” needs a reality check. Preferably with gloves on.
3.
Myth: Growth Is Always Good
Reality: Infinite growth on a finite planet = ecological faceplant.
We’ve grown so much that we’re now outgrowing the planetary systems that keep us alive. Growth is great when it means better healthcare. Not so much when it means more private jets, more plastic, and more burnout.
At some point, growth stops delivering benefits and starts delivering wildfires.
4.
Myth: Technology Will Save Us
Reality: Technology is a tool. Not a time machine. Not a deity. Not your mom.
Tech is great — but it’s not magic. Every gadget needs minerals, energy, labor, and stability. And most new tech gets used to accelerate extraction, not slow it down.
You can’t invent your way out of ecological overshoot if your entire system is designed to overshoot.
5.
Myth: GDP Measures Progress
Reality: GDP measures how fast we’re turning nature into garbage.
6.
Myth: We Can Always Substitute What We Run Out Of
Reality: You can’t replace a coral reef with a coupon code.
7.
Myth: Energy Is Just Another Input
Reality: Energy is what makes everything go. Including the lie that it doesn’t matter.
8.
Myth: Supply Curves Always Slope Up
Reality: In digital markets, the winner eats everyone else.
9.
Myth: Humans Are Rational Utility Maximizers
Reality: People are emotional, social, biased, tribal, messy, and glorious.
10.
Myth: Price = Value
Reality: Price reflects power. Not worth.
11.
Myth: Debt Is Just Money Moved Around in Time
Reality: Debt is a bet on future energy, labor, and stability.
12.
Myth: Money Comes From Savings
Reality: Most money is created out of thin air — when banks issue loans.
13.
Myth: Economic Laws Are Universal
Reality: They were invented during the fossil-fueled fantasy