Neoclassical Economics: the Bitter Fruits of US Domination

This article is a chapter from the book «Behind the Scenes of the Formation of Economic Theories: from Theory to Corruption» entitled «Bitter Fruits». The authors of the book are researchers from different countries: Mason Gaffney (USA), Fred Harrison (England) and Galina Titova (Russia). The book was published in 2000. The authors predicted the fall of the US authority in the world. They warned Russia against mindlessly copying economic theories alien to national interests (in particular, monetarism), which bring destruction to national economies. The article shows to what negative consequences the prevailing neoclassical economic theory (NCE) in the modern world has led the USA. These are the deterioration of working conditions; the decline in the return on capital; the concentration and wealth in the hands of those in power; the growth of social problems; the decline of the authority of the United States in the world. The preface to the book was prepared by Academician of the Russian Academy of Sciences D.S. L’vov (1930–2007), who in 1996–2002 headed the Department of Economic Problems of Environmental Management of the Russian Academy of Sciences. Academician D.S. L’vov spoke about the pernicious consequences of using the NCE as a guide to economic reforms in Russia in the 1990s. He was the initiator of the formation of a new, so-called moral economy, which would be based on the direction of natural resource rent to the income of society and its use for social needs, education, healthcare, military and other national purposes.