Towards a Rethink of Economics
- a Multi-aspectual Economics
enlivened with a Christian Perspective

Abstract:

But change is not happening where it matters, nor fast enough to stave off disaster in these areas. Why not? What will make it happen? And is it important to happen?

These pages recognise and discuss three main reasons to why change is not happening. (a) The myriad recent thinkers and ideas each cover only bits of the problem, and there is no integrated view. (b) There is no paradigm that could redirect the whole practice and theory in the field of economics. (c) The ideas, even when intellectually satisfying, do not compel, and give little grounds for hope. These pages, emerging from discussions after Mark Carney's 2020 Reith Lectures, try to take an integrated view, offer a soundly-based paradigm and offer a perspective that compels action and gives grounds for hope.

1. Introduction

The dam that is holding them all back needs to burst and flood the field of economics so that it can once again be fruitful. How may we integrate all this, and be ready for other ideas as they emerge? Drawing on the ongoing discussions that emerge from Mark Carney's 2020 Reith Lectures, by a group of Christian thinkers, this "rethink" tries to:

• Bring together such diverse kinds of recent thinking;

• Remain open to the realities of economic activity, however complex, in all its aspects - those of economics a such together with those of environment, justice, joy, health, faith, etc.;

• Develop a way of understanding of economics practice and theory, a different mandate for economics that is wider and richer, taking account of all aspects and can embrace the ideas of recent thinkers, the insights of conventional economics, and ideas and responsibilities yet to be recognised - but a paradigm and mandate that can be applied now;

• Cleanly delineate the role of a Christian perspective so that it can make a genuine contribution (rather than, as sometimes has happened, trying to 'dominate').

The result is what might be called Multi-aspectual Economics, which incorporates Embedded, Multi-valued, Moral, Multi-level, and Responsible Economics (instead of detached, Narrow, Harmful, Fragmented and Self-centred Economics). This might prove to be a new paradigm for economics, both its theory and practice.

2. Recent Thinking in Economics

This article seeks to draw a broader picture that can accommodate them all. See Section 2. Problems with Economics

3. Towards a Broader Picture

• Embedded Economics instead of Detached Economics: Widen the attitude and perspective of economics, in both theory and practice, to see itself as one sphere of reality embedded within and among all others. Most economic theory and practice largely ignores other (non-economic) aspects or reduces them to economic concepts (e.g. "the bottom line"), though some recent ideas recognise them, e.g. biodiversity, climate, volunteering. See 3.1 Widening Economics to See Itself Embedded Among All Aspects of Life in full version. ;

• Multi-valued Economics instead of Narrow Economics: Widen the idea of value, measurement and money. What is the real value of rainforest or climate? Or of unpaid housework? Or of leisure? Or of good attitude? How should economic take such values into account? Most conventional economics largely ignores them, presupposing value can be measured by numbers (money). Recent thinkers are struggling with this. To tackle this, we use a conceptual framework that allows us value the supposedly invaluable of many kinds. See 3.2 Value Beyond Just Money and even Beyond Measurment in full version.

• Moral Economics instead of Harmful Economics: Widen our understanding to recognise the harmful and useless as well as good of economic activity. Most economic theory and practice presupposes only good (e.g. GDP, growth as good), though some recent thinkers recognise, and want to curb, some kinds of harm, e.g. climate change. The useless is the non-essentials we purchase (we throw away 30% of our food!), "bullshit jobs" and so on. See 3.3 The Good, the Harmful and the Useless in full version.

• Multi-level Economics instead of Fragmented Economics: Widen our view of economic activity to integrate micro, macro and global economics activity. Traditionally economics is divided into micro and macro economics, and has difficulty with global economics, but the overlap between them is increasingly recognised. We try to not only recognise that but understand the relationships between them. See 3.4 Multi-level Economics: Embracing Micro, Macro and Global Economics in full version.

• Responsible Economics instead of Self-centred Economics: Widen beyond the competitive 'rational economic actor' to responsibility. Conventional economics largely excludes ideas of responsibility, presupposing a separation of Is from Ought. We believe normativity and responsibility are inherent in economics. See 3.5 Widen Beyond Competitive Rational Economic Actor to Recognise Responsibility.

• Bring all this together as Multi-aspectual Economics. )Recent thinkers and ideas each tend to focus on one or two of the above, and none has tried to bring all those widenings together into a single framework. See 3.6 Bringing All Widenings Together in full version.

3. Philosophical Framework for Multi-aspectual Economics

4. How to Widen to a Multi-aspectual Economics

We suggest the following ways in which each widening might be achieved:

• Embedded Economics: (Widen the attitude and perspective of economics, in both theory and practice, to see itself as one aspect of reality embedded within and among all others.)

  Economic activity is inherently multi-aspectual. Impact of economics on the other aspects and vice versa, especially those of attitude, may be understood via inter-aspect dependencies. When we understand the inherent coherence among the aspects, we will naturally see economics as embedded among other aspects. Overall Good is all aspects functioning well together. Detaching an aspect distorts our view and misleads us. The service the economic aspect offers others is help other spheres to manage resources carefully. See Section 5.1 Economics as One Aspect in a Multi-aspectual Reality

• Multi-value Economics: (Widen the idea of value, measurement and money.)

  Each aspect implies a distinct kind of value; economic value is only one of at least a dozen kinds. The value of something is what it could contribute to Overall Good. Functioning in an aspect actualizes that value. Focussing narrowly on economic value undermines actualization of other kinds. Quantitative measurement restricts and distorts evaluation, and some kinds of value must be treated qualitatively. Money should be seen as the aspectual functioning it enables, not as owned commodity. See Section 5.2 As Aspectual Approach to Value and its Measurement

• Moral Economics: (Widen our understanding to recognise the harmful and useless as well as good of economic activity.)

  Each aspect offers a distinct kind of good and most, a distinct kind of evil or harm. Dooyeweerd's aspects can help us separate out the harm from the good, in all their kinds. The useless economic activity arises from idolising or giving undue emphasis to one aspect over others. See Section 5.3 Aspects of Good and Harmful Economic Activity

• Multi-level Economics: (Widen our view of economic activity to integrate micro, macro and global economics activity.)

  At each level of economics, different aspects are of primary importance and govern the way economic activity operates at that level. Considering all aspects together can integrate all levels in our thinking and practice. See Section 5.4 Aspectual Levels of Economic Analysis

• Responsible Economics: (Widen beyond the competitive 'rational economic actor' to responsibility.)

  Entities (e.g. nation or business) gain their being from aspectual meaningfulness and law, so each type of entity implies responsibility. Each aspect implies a different responsibility. Inter-aspect dependencies can help understand indirect responsibilities, and how economic activity can serve other aspects rather than demand to be served. See Section 5.5 Responsibility from an Aspectual Perspective

• Multi-aspectual Economics: Do all this together.

  All aspects work together (harmonise) with no inherent conflict between them, and are the very enablers of existence, process and norms. See Section 5.6 Bringing It All Together

This suggests an integrative conceptual framework - a paradigm - for a new approach to economics - including perhaps its associated fields of finance, banking and business.

Some gaps remain to be discovered and filled. All the above need to be worked out in more detail in both theory and practice. This requires research and imaginative exploration. See Section 5. Using Dooyeweerd's Philosophy to Widen Economics

5. Conventional Economics

But what about conventional economics (of left or right)? Should it be rejected? We believe that it too offers insights, and may be accommodated within that wider picture. But all its concepts and practices need to be widened, and probably can be, if we adopt a multi-aspectual approach. See Section 6. Engaging with Conventional Economics

6. Christian Perspective on Multi-aspectual Economics

• A religious perspective provides motivation. Without it, we can, and do, say "So you say! I disagree! I won't!" Ultimately, there is no meaningfulness nor normative thrust without some Divine to Whom we are beholden. But that alone leaves us helpless and without much hope.

• A Mosaic perspective adds the idea of repentance, and of a God proactively intervening in surprising ways to solve problems that seem intractable to us, once we unconditionally repent. But what can we do as individuals?

• A Christian perspective adds personal relationship with God, so that people can become changed in heart so they will then treat Creation (including its economic aspect) aright. This gives grounds for real hope. What we do here and now echoes throughout Eternity.

See Section 7. Enriching with a 'Christian' Perspective

This page, "http://christianthinking.space/economics/xnr.html", is part of Christian Thinking in Economics, which is part of Christian Thinking Space.

Written in the style of classic HTML, using Protext and Pagestream on an Amiga 1200.

Created: 29 October 2021. Last updated: 6 November 2021 Vignette. 8 November 2021 section numbers corrected. 9 November 2021 named the areas. 10 November 2021 'instead of'. 17 November 2021 rw asps. 27 November 2021 abstract; better title (was "Rethinking the Economy, Towards a Multi-aspectual Economics enlivened with a Christian Perspective"). 6 December 2021 none suff. 13 December 2021 better abstract, giving four points; vignette in box. 20 December 2021 sp. 24 December 2021 God intervening. 28 December 2021 non-ess. 31 December 2022 rw. 5 January 2022 renamed Unconcerned Economy as Self-Centred Economy, errors. 27 January 2022 gaps. 29 January 2022 rw 'abstract' and split into Introduction. 19 February 2022 Moved Vignette to index; corrections. pdf. 11 May 2022 clearer Xn Persp. 18 May 2023 edited from notes of a year ago.