To Which Defunct Economist Are You Currently Enslaved?
John Maynard Keynes once wrote that "the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist."
Economic theory does indeed have quite a large impact on our lives that is far greater than most any of us are willing to admit or understand. Policymakers and politicians guide fiscal policy, set monetary policy, and collaborate on financial regulations that impact almost every transaction in the market place. These theorists and philosophers all begin with a set of ideological constraints that frame their world view. Will you sit back and allow them to create the rules of the game?
As Ludwig von Mises stated in one of the concluding chapters of Human Action on The Place of Economics in Learning:
"Economics must not be relegated to classrooms and statistical offices and must not be left to esoteric circles. It is the philosophy of human life and action and concerns everybody and everything. It is the pith of civilization and of man's human existence...
There is no means by which anyone can evade his personal responsibility. Whoever neglects to examine to the best of his abilities all the problems involved voluntarily surrenders his birthright to a self-appointed elite of supermen. In such vital matters blind reliance upon "experts" and uncritical acceptance of popular catchwords and prejudices is tantamount to the abandonment of self-determination and to yielding to other people's domination. As conditions are today, nothing can be more important to every intelligent man than economics. His own fate and that of his progeny is at stake...
Whether we like it or not, it is a fact that economics cannot remain an esoteric branch of knowledge accessible only to small groups of scholars and specialists. Economics deals with society's fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen."
Comments (7)
M Farmer
I agree wholeheartedly with this. Ignorance of economics puts a person at a serious disadvantage and ensures they'll be misled by a mongrel collection of ideas that are usually intended to justify the state's expansion.
Published: January 19, 2009 5:51 AM
Scott Burger
Justin:
My compliments to you sir. This cleared up the importance of why I need to improve my understanding of economic theory. I already know that Keynesian theory can not work in the long term. However, I would like to increase my knowledge of the Austrian school.
Thanks,
Published: January 19, 2009 7:59 AM
Madhusudan Raj
Couldn't have agreed more with this. Very true.
And I feel it is our responsibility as someone who knows and understands economics, to spread it to the layman.
Published: January 19, 2009 9:01 AM
N. Joseph Potts
Everybody already IS an economist. Some people reject that notion, while others who grant it assign it little or no importance.
We are all poorer, and understand each other (AND OURSELVES) less, the more we do so.
Published: January 19, 2009 9:23 AM
Heather
Economics has helped me to understand social and political issues that I could never comprehend before. I've only been interested in economics for a couple of months, but I can't get enough.I have been more enlightened by a few months of personal economic study than I was in my entire public school and college career. I am able to take a position on issues that I was confused and floundering on before because I now identify with the Austrian school principles. It truly has been a life changing experience.
Published: January 19, 2009 1:59 PM
prettyskin
The people's own behaviors are indeed economics. Everyone who participates in any marketplace is surely producing actions that economists somewhere at sometime in history turn into theories. Majority of the participants don't know intelligentsia terms, graphs, models, and theories. They just commit marketplace actions based on intrinsic and/or extrinsic values. It is economists (small group of scholars) who are cataloging human natural behaviors in marketplaces. So, the economist are enslaved, not the people.
Published: January 19, 2009 2:35 PM
gene berman
prettyskin:
and you, too, are enslaved in having been forced to make that comment (and me, too, in having been forced to respond).
Published: January 20, 2009 4:47 PM