Efficiency

Mathew Forstater forstate at levy.org
Mon Aug 10 18:18:38 PDT 1998


Juan Jose Barrios wrote:


> I Agree with Max. In Economics it is believed that "more" is better than
> "less". Now, should you introduce things like crime, rapes, etc, etc,
> obviously that axiom is not valid. However, it does make sense for
> popular goods and services, doesn't it? Now, Ithink your problems arise
> because, as I said, more is not always better than less due to moral
> principles (I am not saying that Econmomics is inmoral). It is true t we
> should always consider all the elements involved so as to make what we
> believe is the correct decision, but that does not invalidate economic,
> i.e., measurable, considerations per se.
>
> Sit back and think: Can you imagine a world without some economic logic?
> If yes, please explain how that world would work. Even if capitalism
> some day vanishes from the face of the earth, you will need economics.
> Only when social problems are no longer with us, then, maybe, we could
> get rid of this (my) profession.....
>
> Juan

Juan- I don't believe in the axiom "more is always better than less." I believe something like "enough" is best. I also adhere to much of the spirit of "appropriate technology," that what is reasonable or workable or best practice in one socio-economic, cultural, ecological context may not be so in another context. For example, a more labor intensive method of production may be preferable even if a more "efficient" less labor-intensive method is available, if the former decreases unemployment. Or a less "efficient" technology is preferable if it results in less environmental destruction or negative impacts on human health. I could give many more examples. There are different kinds of "economics." Some help us to understand the economy, so we can try to contribute to the improvement of the material life of human beings. Some have been disastrous for us. Nothing personal against your profession. Joan Robinson said "we study economics so as not to be fooled by economists." That's why I studied mainstream economics. I studied and study alternative approaches to try to find possible solutions to problems. For me, the study of economics needs to also be strongly supplemented with the study of other things as well. Best, Mat



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