Steve Keen - Where I disagree

This post is about me capturing my thoughts about the work of Steve Keen and the those areas where I don't completely agree. It is because I largely agree that I am bothering to write this and explore the areas of weakness I think I see in his arguments and proposals. I don't intend to include a full summary of his main theories, there are numerous videos on Youtube that can be viewed that do a better job of explaining them than I would do and you can also find his manifesto (although some of the ideas may have progressed since then. I'm also in places going to suggest work that I think should be done, I have no expectation that Steve Keen or anybody else will do this work because I would like to see it but it is what I think would help convince others.

I'm a big fan of Steve Keen's work. Both `Debunking Economics` and `Can we Avoid Another Financal Crisis` are excellent, I support his Patreon and have been to a couple of his talks. I'm completely convinced of his core contentions about the nature of banks and their creation of money, necessity of government deficits and the critical importance of private debt and particularly it's rate of change to the economy. I especially like the data based work that showing the corelations and the simulations using highly simplified, understandable models that produce dynamic behaviour that seems to show similar behavior to the real world. His descriptions of mainstream economics are almost unbelivable to me, I struggle to understand how anyone puts up with the limitations of equilibrium analysis as anything other than a massively simplifying assumption to calculate limits of possibility and that they don't include banks and debt in their models is fundamentally incredible but does appear to be true.