What is truth?

Posts tagged ‘Environmental Economics’

The irrationality of it all

 

By David Mc Williams

Over the past few days, I have received all sorts of economic forecasts of 2013 penned by economists in large financial outfits who are confidently telling me what is going to happen next year. Most of these guys were the same people who didn’t foresee this crisis, yet few have lost their jobs and here they are, without the slightest hint of doubt, outlining what is likely to happen in 2013.

Of all the characters we should fear, the overconfident economic forecaster is surely one of them. When the Queen of England asked why none of these professionals warned of the credit crunch, she was only articulating what many people must have thought, which is “if you guys are so clever, why didn’t you see this crisis coming – and if you didn’t see it coming, why should I listen to you now”?

The failure of economics to predict human behaviour is a significant charge that modern economists have not properly answered and the failure to answer this accusation adequately has undermined economics as a whole.

In the final column of the year, we are going to take a quick look at the state of the economics game and ask whether the fundamental laws of traditional economics bear any relation to reality or offer any insight into how people actually behave……………………..

Full article at souyrce:http://www.davidmcwilliams.ie/2012/12/31/the-irrationality-of-it-all?utm_source=Website+Subscribers&utm_campaign=e3ac4be19f-22112012&utm_medium=email

Meta-Economics:as introduced my E.F Schumacher in his classic book

By Christopher M. Quigley B.Sc., M.M.I.I. Grad, M.A. www.wealthbuilder.ie

This brief essay is a summary of the idea “Meta-Economics” as introduced my E.F Schumacher in his classic book; “Small is Beautiful.” Economic: “Sufficient to give a good return for the money or resources expended.” Meta: “To transcend or go beyond.” The neglect, indeed the rejection, of wisdom has gone so far that most of our intellectuals have not even the faintest idea what the term could mean. But where can wisdom be found? It can only be found inside oneself. To find it one must become liberated. Through such liberation one can become relevant. Wisdom enables us to see the hollowness and fundamental unsatisfactoriness of a life devoted primarily to the pursuit of material ends, to the total neglect of the spiritual and the sustainable. The influence of economics upon the management of government has grown exponentially since the seventies. However, it is now being realised that the judgment of economics is a most fragmentary one. Classic economic theory deals with demand and supply but all contemporary demand and supply is exchanged through the medium of money; fiat money. Due to the importance of stable money supply to the correct stewardship of any economy no government should unduly tamper with its smooth operation. To do so invites mayhem. As a result of catastrophic error, sub-prime crises, derivative explosion, credit balloons, defunct regularity oversight, debt monetization, and private credit exploitation the money supply has become so corrupted it is almost impossible for anybody to make correct economic decisions. The historic” medium of exchange” model has been broken. Fidelity with the integrity and the sacrifices of our forefathers has been compromised by a shallow elite. To get out of this “economic crisis” governments must now start thinking in Meta-Economic modalities. Thus we must acknowledge that to sort out the mess we must go beyond “classic” quantative economic thought. In the new paradigm, wisdom must prevail. The fatal flaw of lack of adequate purchasing power, under the current “credit” model, must be acknowledged. Without this conceptual breakthrough the crisis will never be adequately solved. Current economic thinking only touches the surface of things and takes for granted so much that should be accounted for; i.e. clean air, fresh water, moral integrity of the majority, faith in authority etc. etc. In a sense this quantative model promotes total institutional selfishness and irresponsibility. This is all very well as long as there is no systemic failure but, unfortunately, systemic crisis is exactly what we are now faced with. Gross irresponsibility has taken the sacredness out of life. The macro crisis is not simply an objective one. It becomes personal in the form of depression, loneliness, isolation, meaninglessness, exhaustion, marriage break-up, atomization, pharma-medicinal dependence, addiction and suicide. To bring about change in this zeitgeist quality must be brought back into the quantative social model. We must strive to bring LIFE back to the process of living. The formula for this is to reintegrate simplicity, integrity and constraint into the functioning of our institutions, enterprises, thought processes and behaviour. Patterns of action must be championed that honour human satisfaction on all levels not just financially. To comprehend this “meta” concept, some examples of Meta-Economic mind-set principles V’s those of Quantative Economics one are set out below: Meta-Economic: Quantative Economic: ———————- ———————— Timely Fast Need Want Sustainable Profitable Community Individual Co-operation Competition Human Mechanic Capital Resource Current Factor of Production Practical Whole Conceptual Sub-Set Shared Purchasing Power Private Credit Medium of Exchange Fiat Money Local Trans-National Art Design Education Training Process Structure Authority Power Means Ends Order Control Tradition Law Common Sense Central Ordinance For economics to become valuable and relevant again to sustainable society its practitioners must realise the truth that economics is a social science and as such it deals with human beings, not atomised ciphers. Rationality must reconstitute itself with morality, ethics and philosophy. If national and international economists continue to lose these classical thought centres, social disintegration will spiral out, uncontrollably. Governments and economists must begin to see the whole picture again. We have foolishly and recklessly abandoned our great Western-Christian heritage. The task now is one of metaphysical regeneration. Economics must stop being taught where awareness of human nature is lacking. We are suffering from a metaphysical disease and therefore the cure is metaphysical: meta-economical. It is time for economics and accounting to grow up and transcend there historical roots.

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