World Finance

World Finance

April 07, 2014 06:05 ET

Dr George Cooper: "Economics is a Broken Science"

LONDON, ENGLAND--(Marketwired - April 7, 2014) - The fundamental economic systems on which we all depend are broken, so says author and contrarian George Cooper in an interview with World Finance. Convinced that broken economies cannot be fixed before the so-called science of economics is overhauled, the financial industry veteran suggests a select few ways in which economic policy is flawed.

"What I mean is it's become a battleground between effectively different tribal groups, all that have got different ideas," he says of economics. "There's validity in each one but they all appear to be incompatible with each other. So to fix this broken science we need the new idea, the new paradigm shift, that lets us pick the right ideas to get them together in a single model that works."

Cooper proceeds to highlight the very many failings of economics in practice, making specific reference to "superstates" and the ways in which we wrongly perceive them to be successful systems.

"If we look at America and we look at Europe. It seems to me that the political system in both of those huge economic blocks had broken down. You had this sort of mindset that a big superstate would work better than a lot of smaller states. I think given how the American system has become log jammed and the European system has become log jammed maybe we should be asking our elves whether actually democracy is better developed in smaller units rather than bigger units."

On speaking to World Finance, Cooper's criticism extends to the eurozone, and the way in which it is governed. "Unless the European Union can establish a mechanism to create the fiscal transfers from the wealthiest states to the poorest states. Unless it can do that, it's going to, I think, continue to create a system of polarizing wealth within the European Union where the poorer countries will get poorer relative to the richer countries. That will create first stagnation and then probably social unrest."

To see the interview in full, head over to the World Finance website now or click on the link below.

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