Economics in Crisis: A Discourse on Current Challenges
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Chapter 1: The Insular Nature of Economics
The field of economics is increasingly perceived as self-absorbed and detached from its potential to create a positive societal impact. David Deming comments, “The economics profession has become [more] insular and status-obsessed, and not focused enough on making a positive impact on the world.” Kenneth Boulding adds a cautionary perspective: “Anyone who believes that exponential growth can go on forever in a finite world is either a madman or an economist [or both].”
The institutional landscape of economics is also alarming. A comprehensive study conducted by Richard B. Freeman and colleagues reveals that a significant concentration of acclaimed economists is found in a limited number of universities. This concentration not only influences publication opportunities but may also hinder creativity and innovation.
Section 1.1: The Illusion of Nobel Recognition
It is important to clarify that the awards given in the field of economics lack authenticity. The so-called Nobel Prize in Economics is merely the Sveriges Riksbank Prize, awarded alongside genuine Nobel prizes but criticized by the Nobel family for lacking true scientific merit.
Subsection 1.1.1: Historical Context of Economics
Economics originated from philosophical discourse, notably influenced by Adam Smith, who primarily engaged with moral philosophy. His seminal works emphasized the ethical implications of economic systems, contrary to the contemporary focus on wealth accumulation.
Chapter 2: The Rise of Neoclassical Economics
As the field evolved, particularly after World War II, a group of economists known as the Mont Pelerin Society sought to overturn the economic policies associated with shared prosperity, advocating instead for a return to oligarchic practices reminiscent of the Gilded Age. Their ideology, which combined anti-communism with libertarian rhetoric, gained substantial traction and led to significant changes in economic policy.
The first video, At the Crossroads Panel: History, Politics and Economics, sheds light on the interplay between these historical developments and their impact on contemporary economics.
Section 2.1: The Shift Towards Techno-Feudalism
The current economic landscape, often referred to as Techno-Feudalism, is characterized by a stark divide between oligarchs and the general populace. Recent trends show that economists increasingly defend totalitarian regimes, suggesting a troubling shift in ideological alignment.
The second video, At the Crossroads, Session IV: Politics and Economics, explores the implications of this shift and its potential consequences for democracy.
In summary, the field of economics stands at a critical juncture, grappling with the legacy of its past and the urgent challenges of the present. The insularity, concentration of power, and ideological shifts pose significant risks not only to the profession but to society at large.