Exploring the Common Roots of Culture, Politics and Economics (Slide Show)
The Economic Crisis: Time for a Paradigm Shift: Towards a Systems Approach, 24-25 January 2013, Valencia, Spain
22 Pages Posted: 10 Jan 2013 Last revised: 26 Jan 2013
Date Written: December 23, 2012
Self-indulgent practices of financial institutions are at the roots of the 2007-2008 financial crisis. Governments wanted to maintain the economic status quo. Governments accrued immense public debt to support banks during the crisis on the apparently false assumption that the banks are in general well behaved and trustworthy. Two policy alternatives to deal with resulting recession: immediate debt servicing through austerity, or delayed servicing through investment for growth. Economic policy is arising from either Individualism or Collectivism; the current austerity policy is linked with individualism. Using cybernetic agency theory, we model the relationship between cultural, economic and political processes. A new meta-model results showing that cultural orientation is a driver for strategic economic agency orientation from which economic policy arises. Strategic Economic Agency theory exists through agency “normative personality”, and operates through traits from which political orientations develop: these permit the anticipation of economic policy. Individualism and Collectivismare polar positions which can be seen as a subset of the broader mindscape theory that can facilitate anticipation.
Keywords: Economic Crisis, Recession, Economic Policy, Individualism, Cybernetic Agency Theory, Mindscape Theory
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