economics
Beyond OWS: Problem #1: The Market Ain’t So Free
This post is one of my series on the Occupy Wall Street movement, on the problems that I believe are underlying the protest and, at the end of the series, some proposed solutions. This post is on the first of the three core problems: that the market makes us miserable:
The Occupy Wall Street movement began as a collective expression of outrage at the current economic conditions in the United States. Crippling public and private debt, high unemployment, gaping income inequality and a recession caused by excessive borrowing and reckless behaviour on Wall Street. Yet, at the same time that many people can’t find a job, there are massive bailouts for those on Wall Street who precipitated this economic disaster.
But these are just the surface problems. While many OWS protesters are championing these issues (among others), they’re but symptoms of a far deeper malaise. If the OWS movement is to go beyond being a protest, it needs to direct its outrage not only at the present economic circumstances, but at the deeper causes of those circumstances. And that’s what this post is about.
Because economics is wonderful tool, but a horrible master. And we let it become our master.
The word “economy” originally meant “efficiency” or “frugal”, particularly in terms of management of resources. It used to be an approach. But now it’s a thing, and it’s a thing that we serve.
This is arse-backwards.
Economics is a science that helps us understand how to manage resources to reach a desired end. If people desire X, the market will often be the most efficient process to produce X to meet that desire.
But sometime around the mid-20th Century (1944, to be precise – the year in which Friedrich Hayek’s The Road to Serfdom was published), we let economics stop being the arbiter of the means to achieve some valued end, and opened the door for economics to become the arbiter of the values themselves.
According to this ideology (now often called ‘neoliberal’), if the market deigns not to produce some product, that’s because we, by definition, don’t value that product. Likewise, if the market encourages the production of some product, that’s because, by definition, we value that product.
This is wrong.
