3.3.2 Unveiling the Money Magic
On checking the statistics one can see that we do not have too little but far too much
money racing around the globe. We live in a situation in which there is no lack of
money but rather a lack of credit to fund real economic activity where it is needed.
Instead, the search for trillions of dollars for good returns on investment causes
frequent bubbles and economic instability. Sounds absurd? That is what I thought
until I read good old Karl Marx. He explains how, in the context of the ascent of the
mainstream economic paradigm, money has been given a peculiar function—a
function that Polanyi acknowledged when he called it a fictitious commodity, but
that economics textbooks overlook. It is very relevant when seeking to understand
roadblocks to sustainable development.
Fig. 3.6 The sustainable development doughnut. Source Based on Raworth (2012: 4)
3.3 How Mainstream Economics Anticipate the Future
107
On checking the statistics one can see that we do not have too little but far too much
money racing around the globe. We live in a situation in which there is no lack of
money but rather a lack of credit to fund real economic activity where it is needed.
Instead, the search for trillions of dollars for good returns on investment causes
frequent bubbles and economic instability. Sounds absurd? That is what I thought
until I read good old Karl Marx. He explains how, in the context of the ascent of the
mainstream economic paradigm, money has been given a peculiar function—a
function that Polanyi acknowledged when he called it a fictitious commodity, but
that economics textbooks overlook. It is very relevant when seeking to understand
roadblocks to sustainable development.
Fig. 3.6 The sustainable development doughnut. Source Based on Raworth (2012: 4)
3.3 How Mainstream Economics Anticipate the Future
107