Wednesday 2 January 2019

Economics Is Not A Fact About The World by Fred Guerin

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"Economics is not a fact about the world. It represents a system of values. Ergo, economics is not now and never has been a ‘science’. It is a social and political choice. This does not mean that certain statistical models and predictive systems cannot be generated from within any given economic system once its premises have been assumed. But there is nothing about economic theory itself that flows logically or inevitably from some set of facts about the world--whether these be facts about nature, the human condition or global society.

That is why the entire edifice of necessity upon which modern capitalism is built, is an utter sham. That is why the idea of ‘homo economicus’—the human being as inherently a rationally calculating, self-interested consumer is a complete fabrication, which just happens to perfectly serve the interests of a wealthy elite. There is nothing mathematically or even rationally 'necessary' about capitalist economics; there are no empirical grounds that provide any reasoned justification for current economic theory or anything like ‘homo economicus’

This means that from the get-go the system of economics we have now can be otherwise than it is. We could just as easily choose to create an economics based on the common good, and the future health and wellness of the environment that sustains life. We do not have to acquiesce to a system of economics adopted by a particular group of privileged men who believed ownership was the basis upon which to build modern society--ownership of land, both what is above and below the earth; ownership of forests and water, ownership of animals; ownership of human beings.

The capitalism we have inherited in its modern neoliberal guise is not an economics chosen for us as the ‘best’ system among worse alternatives, as some modern apologists have argued. It is, however, the single most efficient means to legitimate the practice of slavery and subjugation of the natural world on a global scale through an economics of ownership. 

It could be otherwise."

posted with permission from the author, Fred Guerin.

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