1727. Rationality and economics

Economics loves to see itself as rational. But it only applies rationality to means, not to ends. Whatever you want is fine, economics is about the rational means to get it. Hence economics is about how to act rational to achieve ends that are irrational.  Economics has no view of needs and desires, it just assumes you have them and then economics begins.

With this approach economics has nothing to say about what kind of society, we should have, only that it be “efficient” and grow. But these are clearly irrational! Efficient at what? To use energy efficiently is not to make money effecient;y. How to decide?

Economics thus tends to reduce itslef to engineering, leaving politcs, philosophy, the arts, anthropology  and the quality of life out of consideration. We need to bring them back together and reconsider what “rational” means.


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