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Fri Mar 31 17:19:04 2006 |
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Regarding the idea of government intervention and coercion as terms that
economists should avoid, I think that the issue is really one of method and
not ideology, as many imply. The economic method, which developed around
the end of the 19th century, limited economics. Economists henceforth (at
least those who bought into neoclassical economics) had to begin their
studies with the pure
market economy. We begin by conceiving of an image of an economy in which
property rights are fully defined and there are no goods with those
embarrassing public goods characteristics. After we study the way in which
real people would act under these unreal circumstances, we are prepared to
deal with the more complex cases of less than fully defined property rights
and public goods. I don't know any other way to distinguish economics from
history than to follow this neoclassical method.
The problem arises when scholars forget that the image of the pure market
economy is a tool to help us understand the effects of using force for some
other reason than the enforcement of property rights. When they go on to
argue, without first fully working through the logic of the economic method,
that the use of force is justified or unjustified, they make an error in
method. Of course, many "professional economists" see no use for the
economic method, as described here. Many others seem to have never learned
neoclassical economics, as described here.
Pat Gunning
National Chung Hsing University
Taiwan
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