Ikonoclast on "Pure Economics"

“Pure Economics”. Ikonoclast, Real-World Economics Review Blog. Feb. 12, 2021

The whole idea that economics and the economy exist as a self contained discipline and a self-contained system respectively is absurd. First, there is a natural system, the biosphere, which contains economics activity and upon which economic activity is dependent. Second, there is politics and force (power) which condition economic activity.

In relation to the second, Chomsky writes of: “…American Liberalism, reiterated… in the Clinton doctrine, which held that the US has the right to resort to “unilateral use of power” to ensure “uninhibited access to key markets, supplies and strategic resources.” Not a right accorded to others, needless to say.”

Under these conditions, the pretense that there can be “pure economics” and a “science” of economics is absurd. It’s equally important to point out that these conditions (use of force to secure and retain strategic access to markets, supplies and strategic resources) show no sign of abating any time soon in human affairs.

The entire and so far successful attempt of capitalist economics has to been to ideologically and systemically “naturalize” itself, meaning make it seem natural and common sense to all its beneficiaries, and many of its bought-and-suborned wage-slaves and politicians, rather than a system of artifice, imposition, exploitation and appropriation.

Capitalist economics is an ideology through and through. Many of its behaviors, for which its useful fools (the bourgeois economists) seek fundamental laws, are axiomatically-determined outcomes based on its rules, parameters and algorithmic directives. Denying this is like saying that it’s a fundamental scientific law of American Football that all points are scored by crossing the plane of the in-game field to the end zone or by other actions in or from the end zone, like the safety. These are obviously not fundamental scientific laws. They are axiomatic outcomes of the rules and parameters of the competitive-cooperative game.

Behaviors in capitalist economics show a strong tendency to be axiomatic outcomes of the rules, parameters and algorithmic calculation prescriptions of cultural and institutional generation and instantiation. There are two limits sets to this proposition. The first limit set is the general set of natural limits (environmental limits and human biological limits). The second limit set is that of overt elite force. In the first case, the environment cannot be pushed beyond its natural limits. It will fail to supply resources and waste sinks adequately and it will “snap back” when pushed too far. Also, in the first case, humans cannot be pushed too far or they will starve, become exhausted or otherwise incommoded or discontented and they will “snap back”, in insurrection and rebellion which may be revolutionary or reactionary in nature). In the second case, the human elites apply force using security and military proxies, in the form of violence, killing, eviction, expulsion etc.

How can such a system be said to only have economic laws? It is quite absurd. It has economic prescriptions, framed by political prescriptions and applications including violence, framed by natural laws which condition the asymptote possibilities of the human rule system chosen. We need to choose rule systems compatible with natural system limits and compatible with moral philosophy prescriptions which take precedence over mere economic prescription. We already do this. Slave markets are not legal. Certain forms of pollution are not legal. We simply need to extend this thinking and reduce the ambit of the “algorithms of capitalism” and its false equation of equating many incommensurables in the numéraire.

This equates ideationally to the most ambitious project since the scientific enlightenment. It will mean getting people to cease believing that money measures value. This is the deepest and most fallacious belief of the modern mind. It is inculcated from the day each child begins to observe adults and learn language. It will be tremendously difficult to remove this false belief, this profound false consciousness of the modern mind.