Provocation #142 Three thoughts
Physics is a social creation and so we get histories of physics, which are different from say the history of the evolution of the atoms of the elements starting with the big bang and producing in turn hydrogen to helium to oxygen, etc.) Economics is the thinking about something – the economy, but a history of economics is very different from a history of economies. These histories are nearly totally absent in economics (but do exist in history departments, works such Braudel’s and Hobsbawm’s.) It is obstructionist to leave these histories of economies out (heterodox thinking stays close to the existing boundaries) because new economic thinking should take us outside the current economy and consider others. One can guess that the reason is that a history of economics can be written from within the boundary of thinking from Smith to Keynes, Hayek, Hirschman, etc, but to write of economies would lead to comparisons reminding us all that the economy we have is not the only one possible. Uncomfortable. But to cope with the current complexities and possible solutions, we need to go there.
On market dynamics, the market is seen as the interplay of supply and demand, but real markets of course are infused with the dynamics of interest, ownership, taste. The apparent attractive arrangement of a market in equilibrium leaves out those things which lead to concentration of wealth: rich pay lower interest rates and have access to better information. If these are added into the dynamics the equilibrium point of a market – unless there is government action – is one person ends up owning it all. This is simple dynamics. Why is this (so it seems to me) so rarely acknowledged?
A further note, a bit more obscure. The Christian New Testament used the word economia frequently, but this was ignored within post Smith economics because the word was translated from the Greek of Athens and the New Testament into the English of the King James as “administration”. No wonder economists did not see the possible subtle infusion of Christian theology and metaphysics on economic thinking.
“Administration was at times the meaning of “economy” but it was in the context of the proper arrangement of God’s project for humans which allowed god’s practical administrative tasks to also characterize the universe, which has echos in the physics-lust of later economics and tells us more about the invisible hand metaphor in Smith. We of course do have administration but it has lost any sense of a shared goal towards which administration should aim. For the early christians it was god’s plan for humanity to develop itself.
The modern scientific use of “economy” gets in the way of seeing economy as the administration of things, not a science, not an episteme, but as a practical activity of the arrangement of the earth to meet human needs.
We might be better off (Keynes says “like dentistry”) if we had sophisticated accounting and good engineering and planning in the place of a theoretical and detached math appropriate to physical forces. With the math focus one can imagine an infinite series of journal articles that detail after detail never get to the question: what kind of an arrangement of the physical and social world should we have for human being as they are?
This morning’s email had an article from Scientific American, almost ironic.
How Physics Lost Its Way
Scientific American · by John Horgan · July 2, 2018
Does anyone who follows physics doubt it is in trouble? When I say physics, I don’t mean applied physics, material science or what Murray-Gell-Mann called “squalid-state physics.” I mean physics at its grandest, the effort to figure out reality. Where did the universe come from? What is it made of? What laws govern its behavior? And how probable is the universe? Are we here through sheer luck, or was our existence somehow inevitable?
Link to the rest..