Economics undergoing a 'meaningful' and 'purposeful' re-think [17th January 2022]
The world of economics is undergoing a ‘meaningful’ and 'purposeful' re-think ... simplistic models such as supply and demand are not enough and do not adequately explain what actually happens in real life ... and they will do so even less moving into the future ...
Since Economics is a ‘science’, it should always act like a science and take a firmer line on discrepancies and falsehoods. Science involves observing the world around us and creating theories to explain it ... theories that explain previous outcomes but also predict future outcomes too.
When further outcomes occur that support the theory postulated confidence in the theory grows. Conversely when outcomes occur that are contrary to the theory postulated confidence drops and theories have to be re-assessed, adapted or even thrown out. Only by continually challenging theories and our current levels of understanding do we make progress, continue to learn and find robust solutions to the problems we face ... and it is this that lies at the very heart of scientific method.
In the case of mainstream economics its many flaws have largely been ignored despite its' failures and despite studies pointing in different directions ...
This is slowly starting to change ... As Nobel Prize winner for Economics, Elinor Ostrom, once put it ... "The power of a theory is exactly proportional to the diversity of the situations it can explain" ... and from this standpoint there is clearly much work to do ...
The Good Turns Foundation has a mission of 'creating a world where good is valued and people and communities thrive' ... and to bring this mission to life we are already using science to re-think the way we see the world and to find unique ways to eliminate problems ... e.g. the current mental health crisis, where psychology, philosophy, sociology and economics are all joining forces to find solutions capable of eliminating the problem ... by directly, systematically and permanently boosting psychological well-being (which is behind much of the rapid growth in anxiety and depression) ... rather than trying to create yet more capacity to try to alleviate its symptoms (e.g. drugs, therapy) …
David Clift, Founder of the Good Turns Foundation
© Good Turns Foundation 2022 [GTF22012022_01]
