For years, many of us outside the ivory tower have watched economists confidently explain the world using tidy models that don’t quite match reality. Now, it seems even the experts are starting to wake up. Nobel laureate Angus Deaton, a man who has spent over five decades shaping economic thought, recently admitted that he’s rethinking much of what he once believed. In his essay, Rethinking My Economics, he acknowledges something the rest of us have known for a long time; economics, as it has been practiced, has ignored some fundamental truths about power, fairness, and the actual lives of working people.

One of his biggest realizations is that power—not just free markets or technological change—determines wages, prices, and opportunities. The old economic story said that workers got paid what they were worth, and if wages were low, it was because of “supply and demand.” Deaton now recognizes that corporate power has a much bigger role than economists have admitted. Employers dictate pay, not some invisible hand. This is what workers and unions have been saying for generations.

Speaking of unions, Deaton now regrets his past views on them. Like many economists, he once saw unions as a drag on efficiency. Now he sees them as a necessary counterbalance to corporate power. He even links their decline to some of today’s biggest problems—like stagnant wages and the rise of populism. Those of us who watched good union jobs disappear over the decades could have told him that.

Deaton also revisits the supposed wonders of free trade and globalization. He used to believe they were unquestionably good for everyone, lifting millions out of poverty worldwide, and now he wonders if the benefits of global trade have been overstated, especially for North American workers. It turns out that shipping jobs overseas and gutting local industries does have consequences. Again, not news to the factory workers and small-town business owners who saw their livelihoods disappear.

Even on immigration, Deaton has had a rethink. While he still sees its benefits, he admits he hadn’t fully considered its effects on low-wage workers. Many working-class folks—especially in industries like construction and manufacturing—have long argued that an influx of labor can drive down wages. For decades, economists dismissed these concerns as uninformed or even xenophobic. Now, Deaton is realizing that, actually, those workers had a point.

One of the biggest flaws in modern economics, Deaton argues, is its obsession with efficiency. The field has spent too much time focusing on what is “optimal” in theoretical terms while ignoring what is fair. Efficiency is great if you’re a CEO looking at profit margins, but for ordinary people trying to build stable lives, fairness matters just as much—if not more.

Perhaps most importantly, Deaton now believes that economics needs to learn from other disciplines. Historians, sociologists, and philosophers have long been tackling questions about inequality, power, and justice that economists are only now beginning to take seriously. Maybe if more economists had paid attention to those fields earlier, we wouldn’t be in such a mess now.

Which brings us to Mark Carney. Once the golden boy of central banking, Carney is now stepping into the political arena with the Canadian Federal Liberals, promising policies that sound progressive, but still carry the scent of Bay Street. The big question is: will his economic approach reflect the real-world reckoning that Deaton and others are finally having, or will it be more of the same old technocratic tinkering? Carney has talked a lot about inclusive growth and climate action, but will he acknowledge—like Deaton now does—that power imbalances, corporate dominance, and the decline of unions are at the heart of inequality? Will he push policies that actually shift power back to workers, or just dress up neoliberal economics with a few social programs? If Carney truly embraces Deaton’s new thinking, we might see a real departure from the old economic playbook, but if he sticks to the well-worn path of market-friendly “solutions,” it’ll just be another round of the same policies that got us here in the first place.

It’s refreshing to see someone like Deaton openly question his own past beliefs. It’s a rare thing for a leading economist to admit they’ve been wrong, but for those of us who have lived through the consequences of these flawed economic theories, starting with the years of Reagan and Thatcher, the real question is: Why did it take them so long to figure this out? And now that they have—will the politicians actually do anything about it?