Heterodoxy’s reaction to economics’ mainstream is entirely understandable in terms of what it is they think they are reacting against. Their neoclassicism is, first and foremost, structured on equilibrium — which is of course the one quiddity certain to confound any description of a dynamic system such as the economy.
SFEcon, by contrast, finds equilibrium entirely superfluous to neoclassical causality. It is only the neoclassicist who requires equilibrium; and the only necessity for his doing so originates is his misguided insistence that exterior reality must be made rational. As we have discussed, scientific achievement proceeds from a willingness to forego the luxury of rationality and settle for effective metaphors to our manifestly irrational world.
Thus it would seem that the first step in heterodoxy’s journey toward a scientific macroeconomics would be to examine neoclassical causation in terms of a necessarily irrational, formal emulator of economic adjustment. In our view, the premise of marginal revenues approaching marginal costs should not be rejected until it has been realized in a proper dynamic structure that can reveal its intrinsic behaviors and prospective uses.