Topic: Economics
So Why DO Most Economists Ignore Preferences? In this article I offer a theory. This article is an addendum to the comment I posted for Christopher Espinal's article: The Economics of Random Stuff: Preferencesby Jahfre Fire Eater
(libertarian)
Tuesday, February 3, 2009
In a recent NolanChart.com article, Christopher Espinal asked: "Why do most economists ignore preferences?"
Christopher offered a reasonable interpretation of the theoretical that lead to the phenomena based on the fundamental assumptions therein. I see his point but I just don't think it really matters. I think the theories that most economists defend isn't based on the rightness of the underlying assumptions. I think their staunch defense of oddly indefinite, reactionary responses to cyclical market behavior isn't based in their worship of the theory at all. It is due to their incentives.
Before I offer my theory, a disclaimer for any poor liberals who have stumbled into my column. I believe most people are decent and well intentioned but imprisoned by a system that creates and defines their limits. My aim is not to shame or belittle the human components of that system but to ceaselessly endeavor to bring about the dismantling of that system so those poor people can finally become productive members of society.
I'll offer my two cents on your question, why do most economists ignore preferences.
First, I'll address the word, "most". This is because most economists are:
1. Not adherents of the Austrian School and the business cycle.
2. Lifetime members of an academic/government guild (cult?) dedicated to supporting the aims of the government in a bifurcated guild apprenticeship program. One track produces progressive (Keynesian) economists and the other produces statist (Freidmanite) economists. Both flavors of government economists are champions of a growing empire. (house of cards)
3. They defend the cycle of government largesse that funds their deeply rooted, ancient guild.
These common characteristics are way more than preference :-) They are a way of life as much as any religious activity is.
So, that is why "most" is an appropriate observation.
As for why, as Christopher pointed out, does this "most" believe preferences should be ignored? That's easy. The longevity of the guild demands that preferences MUST be ignored. The system is designed to create economists who react viscerally to any threat to the system. This starts with Kindergarten and continues to master druid-ship as a tenured professor and beyond. Most of society is trained to believe in the mysterious nature of economics but only a few become the "man behind the curtain" by delving into the economic mysticism deep enough or long enough to become the keepers of the guild.
Ludwig von Mises magnum opus, Human Action, expounds on your observation for some 900 pages. Human actions define reality, how can they rationally be ignored? Yet they are...by MOST economists and MOST voters in the USA as the recent election indicates.
So, the choice for the questioner comes down to this: Do you proceed on the assumption that most economists are irrational? or, Do you proceed with the assumption that they are rational?
It is my observation in face-to-face debate that "most" people assume those who disagree with them are stupid or irrational or just plain contrary.
Why would that be?...see above regarding the government process that begins in kindergarten..."most" of society is trained from a very young age to think identically and react identically to threats and perceived threats to what they have been taught by the fledgling guilds men who are also known as "teachers" by those who don't understand their real purpose. Those poor misguided well-intentioned people are populating bureaucratic indoctrination centers and being held up to children as role models and heroes.
They are all pawns of the elite powerful class who control the system and perpetuate the indoctrination centers. Even to the extent of honoring guild master with Nobel prizes for crying out loud. The empire rewards those who keep it functioning. The function of empire, of course, is to extract wealth from an ever-increasing sphere of domination while funneling as much of that wealth as possible into the pockets of as few as possible.
Taking into account preferences, human actions, as von Mises did, removes the mysticism. It changes the nature of economic understanding fundamentally so that the elite empire builders and their system or economic "expert" guild masters has no power. The guild relies on the fact that most people are trained to respect expert opinions and that academic bureaucrats are all "experts" compared to the rest of the class. With that cloak of mysticism in place, they can interpret the runes and advise politicians to ALWAYS spend more while being free from having to reconcile the outcome of their advice with the real world.
The Austrian School treats economics as a living, changing ecosystem of humans and actions. The Keynesian/Freidmanite paradigms treat economics as an all powerful robot with an elaborate remote control that is not labeled and only the guild masters can "know" what buttons to push to elicit which responses in the all powerful robot.
...or maybe they really are stupid, irrational liberals and it doesn't take any more explanation than that. In any case, their view of the world depends on ignoring preferences by demonizing the word, and then the practice of, (gulp) discrimination. Political correctness isn't just a funny foible our society invented, it is a cancer on reason. It is a tool of the empire builders aimed at homogenizing the population so their silly actions fit better into the Keynesian/Freidmanite theories of infinite growth potential. Once the masses are turned into easily manipulated cogs, their preferences and behavior no longer have to be ignored, they can be used to further ensconce the guild in a protective bubble against the real world of cause and effect.
That's the plan, man. My question is, why do we let this continue another day?
-Jahfre Fire Eater
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