Does de Ugarte make that break? Not in this essay and not in his previous one on “Abundance Utopia and Degrowth.” Instead, he appears to adopt the equally fallacious position that if arguments for degrowth are fallacious, then “the opposite” of degrowth must be true. This is a false dilemma. Actually both growth and degrowth are fallacious because there is no conceptually coherent aggregate there that could perform the requisite growing or not growing. Degrowth at least has the value of drawing attention to the discrepancy, even if the terms in which it does so are flawed.
It might help de Ugarte’s critique for him to acknowledge that Alfred Marshall — one of the originators of neoclassical economics — offered a similar methodological critique of the ceteris paribus analytical method. And, of course, Marshall’s warning has gone unheeded. There is thus nothing new in pointing out the fallacy of static analysis. Actually similar fallacies have been pointed out throughout the history of political economy. Ironically, the criticism of fallacies has often formed the foundation for the erection of new and more formidable fallacies of the false dilemma or ignoratio elenchi variety.
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