The Athenian democracy operated politically and economically as an aristocratic slave owning society. In order to be a citizen you must be male and of Athenian descent, but more importantly, you must possess capital, or tangible assets, usually land, but other times a horse was a sufficient indicator. Business and economy functioned among households, where each home was a corporation with women providing children for labor, but more importantly to inherit the capital assets and business. Slaves and the very poor non-Athenians were the laborers and looked at as nothing more than expensive tools, much like a plow or hammer or, for a more contemporary example, a car, which can serve various functions maintaining the business and household. Most interesting is that Athenian citizens universally considered wage labor to be the most debasing form of work, primarily because of its repetitive mechanical nature which requires no thought. In Ancient Greece it was unthinkable for any self-respecting citizen to ever work for an hourly wage. That was reserved exclusively for the slaves and xenos. Honorable means of income included rent, investment activities, and growing the business, whether it was in manufacturing or mining or crafts.
Some thousand years later John Locke purposed a treatise on government and politics with the sole aim of facilitating human self-preservation. For Locke, the most important and only worthwhile goal of the government was to ensure that property was parceled out and protected fairly among citizens. Locke believed that man’s naturally ordained rights were a healthy life, liberty, and property, all of which were essential for the pursuit of self-preservation. The right to property was a significant aspect to securing the other provisions that aided in self-preservation. Property, or more specifically capital assets, allowed man to retain value and worth, provided him a means of subsistence, and a means of attaining happiness by laboring his land in order to increase his value.
Capital assets, such as land or other hard assets of value, were a fundamental role to being an autonomous, equal, and free member of society throughout history. I ask myself, what is the current state of the US economy and society, and how do we compare and stand up with the values and realizations that past thinkers and societies valued as paramount to liberalism, that of liberty, autonomy, and equality, that facilitate and ensure self-preservation?
I look around at society and I see many problems: inequality, concentration and centralization of wealth, wild financial speculation or “irrational exubrence” in investment markets, debt and credit, poverty, stagflation, corruption among politicians working for corporations and financial institutions, corporate person-hood that robs individuals of representational power and dignity, and many more. What is the cause of these problems? While I believe the questions and their inquiry are philosophical, the explanation, in my mind, is purely economical, or exists within the realm of political economy. After all, economics is the study of human interactions within the various ecologies that sustain them. This includes every facet of the human condition, as well as environmental and sociological externalities and considerations.
Unlike many economists, my premises are philosophical and existentially rooted in a singular force that guides and shapes all decisions. This force is the will-to-power. I’ll elaborate more on the nature of this often wildly misunderstood concept at a later time. But first it’s important to explore some assumptions contained in the prevailing macroeconomic theories, specifically the mainstream economics of Keynes, Friedman, and other monetarists.
I’ll need to explore their basic assumptions in value-theory, decision making and preference theory and their relation to various consumption theories (such as conspicuous, necessary, etc), money, supply and demand, labor markets and employment, wages rates, prices, institutions, investment and saving, economic development and growth, business cycles, the nature of competition and competitive markets, capital accumulation and its role in capital concentration and centralization towards inequality formation, entrepreneurism and technological innovation, government fiscal policies and taxation structures, monetary policies and inflation, banks and financial intermediaries, the wealthy and more. I will also explore assumptions contained within neo-classical and contemporary theories such as ceteris paribus (as well as the associated equilibrium states, atomistic and neo-platonistic conjectures and their ideal, representative variables), real balances and the Real-balance effect, the purchasing power of money, Say’s law, the Fisher effect, the nature of inflation, the liquidity-preference theory and liquidity trap, and the nature of aggregate supply and aggregate demand.
I also want to explore the how we conceive and view the role of various entities and nature of contexts, such as imperfect competitive markets (such as monopolies, duopolies, oligarchies and the like), short-run and long-run outcomes, propaganda and advertising, product differentiation, the affluent society, institutional powers and their countervailing powers, and others.
Lastly, I will examine the methodology for justifying and legitimizing these various claims by looking at various paradigms or frameworks such as those characteristic of empiricism and analyticism, and how they factor into an array scientific and non-scientific traditions like those of historicism, psychology, sociology, biological evolution, and even physics and the metaphysical reflections of phenomenology and its dialectical method.
In sum, I would like to combine understanding from all these aspects to produce a sound, organically rooted, evolutionary paradigm for political economy existing, if at all possible, under the pretext of political philosophy’s liberalism, like that found in the US constitution.
I’m so excited I’m trembling. My mind is brewing with enthusiasm. I feel like I can see through the noise, the static, perfect problems. I don’t know what the solution is, but I need to articulate the fundamental problems first. My next post will elaborate on the current issues and problems I observe within our country and explain why they exist. Specifically, I will expound on why our fatally flawed economic paradigms are only contributing to these problems.