Nobel Laureate economist Angus Deaton has delivered a ferocious rebuke to his own profession, saying economists have failed to understand that capitalism is about power.

Angus Deaton is the economic doyen from central casting. The bow-tie-wearing econometrician was born in Scotland, did a PhD at Cambridge and has been at Princeton for the last 40 years. He’s currently the Eisenhower Professor of Economics and International Affairs Emeritus. He won the Nobel Prize for Economics in 2015. And he’s just dropped an almighty bucket of shit on his entire profession.

Deaton has only belatedly realised: modern capitalism, particularly in its neoliberal form that disempowers governments and rivals like trade unions, is about the use of power by corporations to “change the rules of the game”, to increase certainty for themselves and reduce it for competitors, workers and consumers. It speaks volumes about how sheltered many mainstream academic economists really are.