economics is on my mind

[photo: view from my room!]

Ethics tells us that it is a duty to work; economics tells us that full employment is highly unlikely. Ethics tells us that we should ship our surplus grain overseas to share it with those in need; economics tells us that food gifts depress prices, thereby discouraging the farmers of the countries to which the gifts are sent. Ethics says that we should care for those who are unable to care for themselves; economics says that social welfare programs are inflationary… (139)

--Howard Richards “Adam Smith, Milton Friedman, and Christian Economics”

I have always wanted to be good at economics however these classes have never been easy for me. Through the hours of aplia homework and working with my econ TAs and teachers, I am fortunate to have a little context on this important issue (although I wish it were more!!) – I know it’s important and I know it’s relevant, but the logistics give me a headache.

One of our main assignments in my core seminar class is to write a “position paper.” We all chose from many different topics – Latin American history, women in Latin America, sustainable development, religion in LA, Christian responses to non-violence, etc. etc. I chose the topic “The Bible and Economic Systems” and little did I know that this topic would take over my thinking for the following 5 weeks.

While the book I was given comes from the liberation theology perspective, I am trying to balance my research with some other readings about ethics, religion, and economic systems. and while I am reading these books I am asking so many questions…

What is the role of the state? What is the state supposed to provide for its citizens? Is comparative advantage just? How can an economy promote justice when we are all self-interested? What is economic justice? Is a better economic system the answer for ending poverty and injustice? What do we do about profits?—we need these, but they also seem to be the problem for so much inequity in the world…is there such thing as true economic partnership between countries? (or is partnership too friendly of a word because we are only self-interested?) What is diplomacy?

The needs of our times, both in practical socio-economic matters and in terms of theory, call for a more generous definition of our science. We need a new economic vision that does not limit itself to observing and explaining market behavior or to theoretical speculations about how to best satisfy a society composed of bloodless Economic Men. What we need, instead, is a science that treats people as holistic individuals with a structure of basic needs and an inborn potential to grow towards higher levels of being and more fulfilled lives. Injecting life into the mechanistic core of economics is a challenging and desperately needed task; it is the challenge of humanizing economics (98)

Mark Lutz and Kenneth Lux “The Economic Problem: Yesterday and Tomorrow”

These quotes are taken from a book I am reading: Through the Eye of a Needle: Readings on Stewardship and Justice, compiled by the Dept. of Economics & Business at Calvin College. I like the above idea of seeing economic activity from a more holistic perspective – there is more to it than markets, trade agreements, comparative advantage, supply/demand curves: there is this basic human aspect of work and contribution to society (and so much more than that, but i'm probably getting ahead of myself here...)

how it all works, I don’t know…but i have 10-15 pages to work [some] of that out ;)