Economics is in for revision. In a way economics as we know it - i.e. neoclassical - is a fake science. Fake due to the fact that all the simplifying assumptions makes the bright logic irrelevant for most practical purposes. One of todays ‘revisionists’ is Steve Keen, who reminds us of the limits of ricardian trade theory and the limits of todays economics as defined by Lionel Robbins as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Scarcity of means calls for efficiency in use - to be achieved by specialisation, also obtained through trade between nations. However, as Keen (pdf) points out, by assuming equivalence between machinery and capital trade theory overestimates the benefits of international trade. Thus, there are limits to the benefits of specialisation. Rather diversity is strength as evidenced in the Atlas of Economic Complexity Modern societies can amass large amounts of productive knowledge because they distribute bits and pieces of it among its many members. But to make use of it, this knowledge has to be put back together through organizations and markets. Thus, individual specialization begets diversity at the national and global level. Our most prosperous modern societies are wiser, not because their citizens are individually brilliant, but because these societies hold a diversity of know how and because they are able to recombine it to create a larger variety of smarter and better products

Thus, todays economics is not just about allocation of given scarce resources, it is as much about innovation by knowledge recombinations.