13 Pages Posted: 5 Feb 2005
Date Written: January 2005
Justice and well-being are of course necessary conditions for a peaceful world order, and we move closer to this goal as our understanding of social and economic behavior becomes more complete. Here it is certainly true that our knowledge of capital-function in mainstream economics is incomplete. For example - exactly how labor and capital work together, in our planning and decisions, to produce consumables and new capital is not substantively understood in our universities and governments, nor is it understood, not coincidentally, how the (marginal) efficiency or usefulness or productive-power of both labor and capital may increase, or contract, depending on the level of expected investment-risk in our economic planning. This incomplete knowledge is coupled to the need to deepen standard economics to its neuropsychological foundation.... Since neoclassical economics and capital-function reside at the heart of capitalism, it follows that this system of high-productivity is not yet comprehensive - a shortcoming that should be considered important, inasmuch as incomplete understanding of any complicated system eventually and inevitably produces unsatisfactory, and often tragic, consequences. As an example, in our global economic system free trade and open markets as policy goals or idealizations may be faulted for increasing expected risk in the economic planning of disadvantaged citizens, thereby tending to discourage their investment in education, skills, and business.... Two main themes along this line are addressed: First, that our understanding of economics, and the capitalist ideology, may be rendered "paradigmatically complete" by reaching down to the neuropsychological foundation; and second, that this deeper understanding will help solve the Economic Problem (poverty), and thereby clear the way for defeating the great dangers of our modern world. Principal attention is also given to our "post cold-war" detant or ease-of-tensions, and the unprecedented opportunity for important and continuing progress that it presents.
Keywords: Justice, productivity, poverty, capitalism, trade, history, free markets
JEL Classification: B00, D00, E60, F02, O24, P00
Suggested Citation: Suggested Citation