Robert Schiller economist who insists that house prices should always remain static in order for a solid, innovative and wealth creating productive economy to exist.
Without it he asserts we get an economy eating itself.
A quick look at Shiller, his famous book is Keynesian.
What worries me is Keynes’s General Theory first edition was published in 1938 Germany with a preface that only a total-state could appreciate it.
Opponents of the Hayek-Mises school pillory Keynes, but at the same time propose “spontaneous” unknowable order, exactly the same as Keynes!
R.Shiller’s Animal Spirits, co-authored with the Nobel Prize-winning economist George Akerlof, traces back to the theory of John Maynard Keynes. In 1936, in The General Theory of Employment, Interest and Money, Keynes wrote: Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits – a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities. Shiller’s book is another chapter in the growing field of behavioral economics, and it documents how emotions can lead to irrational economic decisions. In his talk, Shiller said that if people were truly rational, they would be paralyzed by uncertainty. Instead, they exhibit a Keynesian spontaneous urge to action.
Keynes, Hayek, Mises, and others all agree that economics relies on unknowability. This is irrational radicalism at its worst – Dionysian, or Nietzschian, or more precisely Mandeville-ian.
The reason I mention this is nothing in the living or human world stayes fixed. Without growth attrition will bring extinctions.