Tag Archive for 'faith'

Economics and ideology: u r doin it wrong!

Published
by
Mark
1 year, 2 months ago
in Economics, Markets, Philosophy, Politics and Sociology
. 18 Comments

This post is a sequel to my previous one on economic faith and doctrines. When reflecting further about the ideological construction of “oppressive state intervention” and some of the comments made on the thread, I kept thinking about the fact that the liberal economy needs an enormous amount of state intervention and support to function, and that a social democratic perspective can be non-statist. One of the easiest elisions to make in thinking about politics and the economy is to equate anti-statism with the right and statism with the left. The two binaries do not map on to each other so simply. In fact, it’s a sure sign of thinking that’s really far too prone to ideology to assume that they do.

So I was happy to find this point rather elegantly made by the Canadian academic Leo Panitch:

Continue reading ‘Economics and ideology: u r doin it wrong!’

Economic faith and doctrines

Published
by
Mark
1 year, 2 months ago
in Economics, Markets, Philosophy, Politics, Religion and Sociology
. 43 Comments

Gary Sauer-Thompson has trained an observant eye on an editorial in the Fin:

Yes, the road ahead looks difficult. But this is no time to abandon our faith in the capacity for enterprises and markets free of oppressive state intervention to reinvent ourselves and bounce back. Human ingenuity will prevail, confidence will eventually return and the wheels of commerce will spin again. There is too much evidence that the world, despite periodic setbacks, continues to progress.

He parses this intriguing paragraph thus:

Interesting isn’t it. The defence of free market capitalism depends on faith not on reason. Reason cannot do the job any more given the global financial crisis and its aftershocks on the economy. So faith is called in to plug the gaps.

Of course, faith was always a big component of economic liberalism. Enlightenment doctrines (and Marxism is another), having toppled God from his epistemological throne as the prime cause, took on some of the characteristics of the theism they thought they’d banished. So economic science has always been contaminated by ideology. Normative values such as “progress” and “ingenuity” underpin a worldview which partakes in blindness as well as insight. Now that a leap of faith is required to defend one’s choice of belief, we’re beginning to see this aspect of economic liberalism in plain view. We’re being asked to sign up to a metaphysics.

Coincidentally, John Quiggin has posted the inaugural number in a promised series of observations about economic doctrines which have been discredited by the Global Financial Crisis. First cab off the rank – the efficient markets hypothesis. Continue reading ‘Economic faith and doctrines’