A thought-provoking challenge to orthodox economics

 

Title: Economyths: 11 Ways Economics Gets it Wrong

Author: David Orrell

Publisher: Icon Books, London

Year published: 2017

The book offers a sharp critique of mainstream economics and the myths that have shaped economic thought for decades. The author argues that economics, despite presenting itself as a science, is built on outdated assumptions, unrealistic models, and flawed reasoning that fail to account for the complexity of the real world. Orrell’s central thesis is that economics has become detached from reality because it relies too heavily on mathematical models and abstract theories, rather than incorporating insights from psychology, biology, physics, and other fields that deal with complex systems.

The book is organized around eleven key myths that Orrell believes dominate traditional economic thinking. Among these myths are the ideas that people are perfectly rational actors, that markets are efficient and self-correcting, and that economies naturally move toward equilibrium. He also challenges the notion that economic growth is always beneficial, that wealth trickles down from the rich to the poor, and that economic models can accurately predict the future. By dismantling these beliefs, Orrell demonstrates how such assumptions contributed to economic crises and policy failures, particularly the global financial crash of 2008, which mainstream economists largely failed to anticipate.

Orrell highlights how economics borrows heavily from nineteenth-century physics in its obsession with equilibrium and mathematical precision. This, he argues, gives a false sense of certainty and control, when in reality economies behave more like living ecosystems, full of unpredictability, feedback loops, and emergent properties. He suggests that economists need to move beyond the outdated machine-like view of the economy and instead embrace complexity science, network theory, and systems thinking to better understand how economic processes unfold.

Throughout the book, Orrell is careful not to dismiss economics entirely but calls for a new approach that is more pluralistic and open to interdisciplinary insights. He stresses that human behavior is not purely rational but influenced by psychology, culture, and emotions, meaning that models assuming perfect rationality are bound to mislead. He also draws attention to the unequal distribution of wealth and power, pointing out that many economic myths serve to justify and perpetuate inequality rather than challenge it.

A particularly striking aspect of the book is its insistence that economic growth should not be the ultimate goal of societies. Orrell argues that endless growth is unsustainable on a finite planet, and that economics needs to shift its focus toward sustainability, well-being, and fairness. He emphasizes the importance of addressing environmental limits and incorporating ecological realities into economic thinking, something mainstream economics often neglects.

Economyths is written in an accessible and engaging style, making complex ideas understandable to general readers without oversimplifying the arguments. Orrell combines history, philosophy, and scientific perspectives to show how economic myths developed and why they persist, while also offering a vision for how economics could evolve into a discipline that better serves society. His conclusion is not merely critical but constructive, urging a rethinking of economic education, policy, and research so that they reflect the messy, interconnected, and dynamic nature of real economies.

In summary, the book is a thought-provoking challenge to orthodox economics and a call for reform. It reveals how conventional economic wisdom has failed to predict crises, ignored inequality, and neglected the environment, and it proposes a more realistic and humane way forward. By exposing the myths that underpin the field, Orrell encourages readers to question assumptions and imagine new possibilities for how we understand and organize economic life.

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