LIVING SYSTEMS-ANALYSIS AND NEOCLASSICAL ECONOMICS - TOWARDS A NEW ECONOMICS PARADIGM

This paper points out the flaws in the neoclassical economics paradigm which invalidate it as an economic policy tool and place it in the realm of illusion. An evolutionary paradigm would be more appropriate. The paper outlines how the primary regulatory processes in living systems analysis (LSA) can be applied to both the design of configurations of resources in the secondary regulatory processes and the creation of new resources so as to optimize the output of the economic system as a whole. It is the degree of government intervention which is important, and how it is integrated, not whether there will or will not be intervention.