There is a Nobel prize for economics. Many interesting subjects have been studied, developed and some of the results have been put into use.
But the world economy is weak, has been weak and who knows what next: When the crisis is there we try to fix it. That is what we are at now. Output must grow, but it does not, there are not enough jobs, poverty is present for many.
The economic systems of the world are clearly not fully understood by anybody. Economics is not a science, not even a dismal one, and we are not able to balance production and demand, there is money but no loans to be had, long term budget balance is not possible, money can’t be used, people are suffering.
It’s all a mess. The financial system, the production system, the consumer system, the distribution system, the ways we use to distribute income.
The big name economists have obviously only partially understood how the human system of economics works. Millions of people in the world call themselves economists – but all they do is sit watching as the economy breaks down. Afterwards they understand well why it broke down.
Politicians with little economic understanding are running the show, and our system of society management must surely be improved.
The money are clearly there – the governments (some) and the banks (some) have them and they are not put into proper use. They appear as crisis financing.
So we must go back to basic theory: how do we run a modern economy where production can be so efficient that we do not have enough old-fashioned jobs for everybody? Somebody else can do it much cheaper? The rate of change is so fast we can not keep up? The government is grossly overspending? Far too many people are just sitting there? How do we stop other people’s problem from entering our economy?
The answer is obviously new thinking: What is economically possible to have must be developed in new ways , understood and practized. Huge pools of money sitting with corporations and governments must be banished. Enough work must be done and can be done, and the proceeds must be shared differently from what we do today. Money must be taken from the pool – the common pool – and shared so that everybody has a basic living.
Some parts of this new thinking is already there: Common pool resource practices, basic wage systems, firmer and more long term budgets (50 years), moving parts of economics out of politics, shifting and balancing the economic power between countries: so why not plan for this, why must we have development through crises?
Why do we use the word power at all – at some point we will be producing enough for everybody, let us have a planned process for that. Productivity can be increased, what do we do when it is high enough, and manpower is not needed. The basic premise is we don’t need you because production is so efficient that you don’t have to work. So where do you get your income?
The developing countries should clearly grow, but the developed countries should start thinking about product transfer, balances, ecology. We were not born to consume, and economics is about choices and constant renewal. The basis for all human activity can surely not be never-ending growth?
Today’s economic thinking is clearly at a loss, divergent and needs consolidation. The models are old-fashioned and not suited for the modern world. So economists of the world: pull yourself together – get a grip.