Saturday, January 12, 2019

Eric Beinhocker - It’s Time for New Economic Thinking Based on the Best Science Available, Not Ideology

A new narrative for a complex age

Some economists believe that their economic theories are based on pure science and so are not biased in anyway with politics, or our desires and wants. They say this is hard science and that their theories show how to maximize profits, but some farmers maximize their profits by using factory farms, which are worse than concentration camps. So, morality should also play a role in economics, as well as our desires, wants, and wishes.

Unlike the laws of gravity, we can choose from different scientific economic models. Most of us here like Modern Money Theory.

Finally, economics has painted itself as a detached amoral science, but humans are moral creatures. We must bring morality back into the centre of economics in order for people to relate to and trust it. All of the science shows that deeply ingrained, reciprocal moral behaviours are the glue that holds society together. Understanding the economy as not just an amoral machine that provides incentives and distributes resources, but rather as a human moral construct is essential, not just for creating a more just economy, but also for understanding how the economy actually creates prosperity.
In short, it is time to forge a new vision that puts people back at the centre of our economy. To paraphrase Abraham Lincoln, it is time to create an economy that is “of the people, by the people, for the people.” We are truly at a fluid point in history. It could be a great step backwards or a great step forwards. We must all push forwards together.

1 comment:

Andrew Anderson said...

What is idealogical about, for example, the government insurance of private, including privately created, liabilities?

Unless the ideology is welfare for the rich, at the expense of the poor, is good?

I'd say we DO need ideology such as fiat creation and use shall not violate equal protection under the law.