[lbo-talk] Decoding Economic Ideology

[Wojtek S]

[WS:]  Nice piece.  It reminds me of another quotation (Richelieu ?)  that
the purpose of language is to conceal thoughts.  This is particularly true
about economics.  Its use of sophisms to conceal power relations on which
capitalism is built is unparalleled among disciplines of knowledge, and
equal only to medieval theology.  Brian Arthur - a key proponent of the path
dependency modeling which negates the decreasing utility "principle" that
underlies marginal analysis - noted that fellow economists rejected his idea
of "increased returns" on the grounds that it cannot be modeled
mathematically (Arthur showed that it can.)  However, this stated reason of
rejection of the increased returns modeling conceals the utility of the
decreasing utility principle for concealing the role of power in economic
relations.

 One political implication of the increased returns model is that big and
powerful organizations can produce greater efficiency by reducing
transaction costs.  This makes it rather useless for legitimating the
anti-government ideology of the business class.  On the other hand, the
diminishing returns model provides justification for self-regulating
markets, which is the center piece of business ideology.  The religious
adherence of the latter among virtually all neo-classical economists
suggests that they are basically stooges of the business class who, in the
words of Johns Kenneth Galbraith, provide needed conclusions to those in a
position to pay for them, but it also undermines their usefulness as
stooges.  A good stooge must conceal that he he a stooge to maintain his
credibility.  hence their hiding behind mathematical modeling.  What is more
objective and transparent than the language of mathematics?  A perfect
language to conceal one thoughts of deference and genuflection  toward the
business class.

Wojtek