2361. Market rational, people not. Dangerous belief

Our belief as a society deeply influenced,  as Keynes made clear,  by dead economists and their students has been that the market is rational but people are not.  This undermines any positive expectation for individual and group thinking and leaves the corporations in control. 

The idea that  aggregates of simple agents lacking relationship to other humans, are what society is  means that the aggregate is  no more than a soup. Any idea of culture or community is pushed aside, leaving power in the hands of the organized entities, especially the corporations, having replaced the church. Aggregates of humans are very communicative, build networks and norms that contain intelligence and can act at times through voting at times by taking to the streets.  Market has undermined this capacity and pretends that  the invisible hand will make it all work out – which it won’t because the corporations  pretend to be self contained except for supply chains and  consumers isolated from each other. 

Societies fail and we should be studying how – but we are not.  We are not approaching reality with a scientist’s mind.

2360. Can economics help transition?

I came across a very well reasoned article on the negative effects of de-growth. But the article ended with the following series of suggestions that allow for de-growth while maintaining the viability of society. My question is,  can economics  help in a transition to such a world.

From Ecological Economics 142 (2017) 306–317. Kish and Quilley

Most significantly, one area of change that really does open up new possibilities is the revolution in social and economic coordination engendered by the Internet and new micro-fabrication technologies such as computer aided design and 3D printing. The emerging ‘reMaker society’ (Anderson, 2012; Hatch, 2013; Carson, 2010; Kostakis and Papachristou, 2014) may prove to be revolutionary because it has the potential to reduce the unit metabolic cost (or ‘transformity’ value) of complexity. Essentially by facilitating the local, on-demand production of relatively high tech. products, new production technology may allow swathes of redundant and expensive complexity associated withtime, it is conceivable that ‘small and beautiful’ could be reconciledwith technical innovation, high tech manufacture and not least a nonstate,non-corporate system of networked communities, collaboratingand trading (albeit at much lower volumes). This is the vision of distributed economy advanced by social entrepreneurs such as Marcin at Open Source Ecology (Thomson and Jakubowski, 2012). Providing the most compelling starting point for a genuinely alternative modernity in an era of degrowth, these new technologies of participative community-based manufacture deserve to be the central focus in debates as to the nature of the elusive ecological economy.

2359. Capitalism the obvious.

Why is capitalism so mystified? It is merely a way of accounting  that legitimates “ownership” of society’s assets.  A cleve trick, noticing that the fingers map on to the sheep, and notches in a stick, an d those with the assets participate, based on the amount accounted to them of the total accounted assets.  –  and make the  key decisions for society. Democracy has been pushed to the side.

Society needs to evolve because of too much extraction of wealth from people and nature has created a network of  destructive dynamics . But any movement of adaptation will undermine the assets as currently distributed.

The rich don’t want to accept that so they are resisting, and society is immobilized just as it is getting clear that letting capital make the decisions will be self serving for that part of society that own the capital,  at the point that, for survival (we can’t live with 3 degrees and probably not with 2. ) we must evolve.

Capitalism is a simple and obvious target for rethinking so why don’t we?

One alternative view is the capitalism puts the decision making power in the hands of those who know how to use it. But will they?

2358. Why Inflation

Why inflation. 

The shortfall in production (no workers)   because of covid led to savings and lack of product. Now that things are more open people are ready to spend but the product is not there.

Second, panic buying, as if everything will disappear – land, houses, food and energy.

A mix of the rational, #1, and the irrational, #2 

This feels like the beginning of a deeper unravelling.

2357. Th (non) efficiency of capitalism

Capitalism has meant efficiency, but it is only efficient in producing profit. For quality of life it is definitely not efficient, rather very sub maximizing and worse, killing the client society that hosts it. It definitely did not deliver on the post WW2 promise of enhancing the lives of almost everyone,  and Keynes’ view that we could distribute the technology of work and free up most for increased leisure and life, free from wage incarceration, did not happen ( Did the economists notice?). But the political process controlled by wealth  co-opted all savings to the owners leaving them with the riches and the workers with the work. 

Now it gets worse, because the workers will be neither needed nor paid. Time for new choreography.

2355. Covid and world health – the future

Something is wrong. This amount of money is probably not well spent and much if it goes into corporate profit and raising the stock prices. Obviously it would be good to treat medicine as a public utility as one system where everyone is enrolled, manage for high morale.
 
International Financial Institutions’ Covid-19 Approvals through Q1 2021 Surpass $260 BillionA CSIS Commentary by Stephanie Segal & Dylan Gerstel 

May 2021 | CSIS Economics ProgramThe CSIS Economics Program is tracking commitments and approvals by major international financial institutions (IFIs) to meet the massive financing needs generated by the Covid-19 pandemic and its economic fallout. These IFIs include the International Monetary Fund (IMF), World Bank Group, and major regional development banks. We also include select regional financing arrangements (RFAs), which, together with the IFIs, central bank bilateral swap lines, and individual countries’ foreign reserve holdings, comprise the Global Financial Safety Net (GFSN).Read on CSIS.org 

2354. Rethink some language

Three  pieces of language to rethink.

  1. ‘People have been left behind.”

People were not left behind as if no action was involved and it just happened. People  were pushed behind or denied access or  the upward rungs were placed out of reach.

  1. ‘Inclusion”

Inclusion is currently used to describe, more, advocate,  moving from the dark skinned world to the light skinned world. But there is no social movement among whites to move to the black. One way illusion.  This is deep racism because its effect – and aim – is to eliminate black culture. This is tragic and evil. It implies a value, it implies what is better. Inner city kids are bilingual and grow up in families rich in emotion and often with exemplary caring and solidarity. Same can be said, more mildly, for Jewish families.  These  home culture of care and culture is a serious resource for the future of humanity – though  how we can get  these two cultures and their emotional development into a secular society is very unclear.

3. “black and white”.

The very language, “black and white”,  is too extreme. It is obviously incorrect, so what work is it doing? The variety of skin colors in any meeting are awesome and beautiful. My tannish pink, your bronze blue. We lose so much by collapsing these into the   anti-color language of black and white.  Po