Rethinking Economics

Who is E. F. Schumacher?

Godspy had a recent article profiling E.F. Schumacher and his book, Small is Beautiful.  Check it out as it may be some helpful background before digging into the book.

An Example Of My Frustration

Before I begin looking at E.F. Schumacher's Small is Beautiful, I thought I would share an example of what frustrates me about today's economic analysis applied to non-traditional fields.

A number of years ago I picked up a copy of the book, The Economics of Life, by Gary Becker and his wife Guity.  For those not familiar with Professor Becker, he won the Nobel Prize for Economics in 1992 and is known for his penchant for applying the theories of market behavior and economic incentives to traditionally non-economic daily life events.

All of this made me eager to pick up the book.  One of the first essays in the book is about religion, where Prof. Becker provocatively argues that having many denominations and sects having to compete for members makes religious groups better.  He writes:

Introduction

    Welcome to Rethinking Economics!

    Several years ago, I started a blog called Integrity (which is now back on the air) and joined the fray in what has come to be known as St. Blog's.  My goals for Integrity were ambitious.  Instead of giving the world my takedown of the day's headlines,  my goal was to create an interactive discussion on the true nature and mission of the lay faithful of the Body of Christ.   On the interactive front, the project was ... shall we say, not a resounding success.

    But what is a man without goals. 

    So begins Rethinking Economics.   As the explanation in the left column says, this will be a collaborative blog focused on exploring economics as informed by a proper understanding of the dignity of the human person.

    I know, I know.  What on earth do I mean by that?  Economics examines human behavior, particularly economic behavior.  It does so, in two fashions:  descriptive and prescriptive.  Descriptive, in the sense that it tries to explain what happens in the world.  Prescriptive, in the sense that it tries to offer a view on how the world should be ordered.  You might have heard the same ideas expressed as positive and normative economics.  (And despite what your economics professor probably told you, few economic problems are ever approached purely from a normative or positive viewpoint.)  Behind both of these viewpoints there are various assumptions about man:  how he thinks, how he processes information, how he values things, and how he makes decisions. 

    When I was in college, these assumptions were what I found most frustrating.  I did not recognize this economic man I was being told about -- with computer-like processing capability, always logical and stridently utilitarian -- as a true portrait of the human person.   It led me to take on psychology (specifically, cognitive psychology) as a second discipline.  At the time I was seen as a maverick and loony for doing so, and the roadblocks I ran into made me change my plans from becoming a professor of economics to law school.  (Ironically, today behavioral economics or economic psychology has a viable presence in some prestigious university departments.)   

    In that same spirit, it is my hope that Rethinking Economics will explore economics, but with the understanding of the ultimate aims of the human person that we know to be true, whether from our Catholic faith or otherwise.  I have invited several friends from the blogosphere to participate, and I look forward to their contributions.

    I also invite you, the reader, to join in.  Don't let the topic scare you off.  A background in economics is not required.  Truth is, most of us know plenty  about economics to explore this subject as amateurs.  And it is too important of a subject to leave just to academics.  In my view, economics (and specifically money) is the overlooked taboo, both in society in general and particularly within the Body of Christ.  Yet, most of us if we are honest will recognize the power it holds over our lives and the influence it has in shaping our society.  And as modern economic analysis grows in its influence -- it has already been exported to fields like sociology, law and politics -- we need to be able to engage it and respond to it. 

    So, whether you approach the topic from the perspective of an economist, a theologian (Catholic or otherwise), or just the average person on the street, I invite you to join in!   Any relevant topic of interest is welcome.  Also, check out the links and resources highlighted on the blog.  Note that they come from all sorts of perspectives, so don't consider them personal endorsements per se.  But I think they are valuable in that they tackle the subject in a way that you may not have experienced in your Econ 101 class.

    As for my part, I am reading one of the books listed in the right-hand column:  Small is Beautiful by E.F. Schumacher.  My first posts will probably be about something that strikes me from that work.