A shared reflection over the philosophical dimensions of economics in the light of the current global financial crises.

1. Economics & Its Crisis of
Philosophy
Philo Agora 02 October 2012

2. Why Economics?
• 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
• John Maynard Keynes

3. Theory & Practice
WHOM DOES
THE SYSTEM
SERVE?
IS THIS
DOING
JUSTICE?

4. Definition
• οἰκονομία (oikonomia, "management of a
household, administration") from οἶκος (oikos,
"house") + νόμος (nomos, "custom" or "law")
• My favourite: the allocation of limited
resources to satisfy unlimited human wants
(Paul Samuelson)
• The task of philosophy will be to question the
definition & nature of economics

5. The Rhetoric of Allocation
• Tradition = f (laws & institutions)
– e.g., History & legacy
• Command = f (strategy & regulation)
– e.g., Taxation & money supply
• Market = f (interaction & exchange)
– e.g., Price, supply & demand
• Martin Heilbroner, The Worldy Philosophers

6. Might or Right?
I’m right. You’re wrong. Not in my backyard.
• The modern conservative is • With some notable
engaged in one of man's exceptions, businessmen
oldest exercises in moral favor free enterprise in
philosophy; that is, the general but are opposed to
search for a superior moral it when it comes to
justification for selfishness. themselves.
• John Kenneth Galbraith • Milton Friedman

7. Do We Resort to Demonization?

8. What “Resources”? (L/K)
• Natural/Commons: e.g., lands & minerals
• Public: e.g., infrastructure & civil works
• Social: e.g., national currency
• Labour: e.g., energies & skills
• Private: e.g., capital & manufactures
• Intellectual: e.g., innovations & inventions
• Externalities: i.e. desirable & undesirable

9. Oversimplification Problem
• IT IS NOT SIMPLY CAPITAL AND LABOUR OR
CAPITAL VS. LABOUR!
• SOME THINGS ARE NOT MEANT TO BE
PRIVATIZED OR MONOPOLIZED
• GREATER VALUE IS NOT IN EXTRACTION BUT
GENERATION
• BAD GOVERNANCE: PASSING ON THE COSTS
TO SOMEONE ELSE

10. Satisfaction = To Meet
Expectations
• What are Your Expectations?
• Programming the Citizen as Consumers &
Producer
• How Are Expectations Formed and Met?
• Role of Media & Politics: Whose Interests Are
Served?

11. Unlimited Human Wants?
• The Quest for Value: From Survival to Wealth
• Accumulation (To Have) VS. Creation (To Be)
• The Ease By which It can ALL if not
ESSENTIALLY be blamed on GREED or
OVERPOPULATION
• Although there are no limits to human greed,
there are also no limits to potential &
possibility: What Is “Fulfilment”?

12. Rhetoric of Capabilities Approach
• the freedom to achieve • Amartya Sen & Martha
well-being is of primary Nussbaum
moral importance • the assessment of
• that freedom to achieve individual well-being;
well-being is to be • the evaluation and
understood in terms of assessment of social
people's capabilities, arrangements; and
i.e., opportunities to do • the design of policies
and be what they have and proposals about
reason to value social change in society

13. The Philosophic Crisis of Economics
• Principles: The Dogma of Market Allocation vs.
the Realpolitik of Market Manipulation
• Rights: The Program of Owning VS. Being
Owned, That We Have No Rights Other than
The Properties We Own, Acquire & Defend
• Aspiration: Feeding the Greed to Own while
excluding others RATHER THAN to encourage
excellence of self & others as “fulfilment”.

14. The Economic Crisis of Philosophy
• Economics Has Neither • Philosophy has
Been Challenged nor condemned economics
Challenged Itself & therefore man to a
Philosophically: struggle for existence:
• What is economics? • Consumer-Worker &
• What ought it to do? the Other as Rival
• What has it given us to • Accumulate & live off
hope for? the interest of my
investments & hope to
be remembered

15. Consistency/Integrity
• Do you see yourself as • We must be the change
the change you want to we wish to see.
see in the world? • Mohandas K. Gandhi
OR
• Must “other people” • He who holds the gold
comply with “the makes the rules.
standards the system • Nicolo Machiavelli
sets” whether the
system complies with
them or not?

16. Redefining the Crisis
The Crisis Is More This ... Than This ...

17. Time to Explore Redefinitions

18. Than Rely on Promises & Excuses