By Anastasios S. Korkotsides
Utility-based idea and the fallback choice-theoretic framework are proven to be biased, irremediably incorrect and deceptive. A appreciably diverse idea of worth and of shopper behaviour is proposed in response to existential interpretations of shortage, worth and self-interest. For self-conscious mortals, simply time is scarce. All different is by-product shortage. worth is within the existence, as an information extract of time, which works into commodities as direct human labour and depreciated capital, via their construction. by means of structuring theirpreferences, shoppers attempt to confiscate extra of such worth in line with unit of expended source of revenue, extending their social presence, soothing their angst and gaining energy over one another. This increases output and makes earnings cancel out. detrimental mental externalities avoid any health or social-welfare style conclusion.
These get to the bottom of a couple of long-standing concerns: endogenously generated development, the micro-macro connection, the cost mechanism, crises, unemployment, and so forth. Equilibrium is of a low-potential variety, now not of a force-balancing one, and it truly is exact, accessible and strong. The correct analytics contain basically monetary, non-psychological entities. customer behaviour is grounded on a well-defined, structure-based choice criterion and on observably measurable magnitudes, simply. The social ramifications of the 2 juxtaposed views are mentioned at size.
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Additional info for Against Utility-Based Economics: On a Life-Based Approach
If one is inclined to answer positively, then a further question arises: if a meta-economics is taken to explain and justify an object-economics, then how does one justify the use of that meta-economics for this purpose without circularity or inﬁnite regress? How does one assess the use of economic principles in the study of scientiﬁc inquiry, economics itself included? Is economics of economics a feasible option? This is the standard reﬂexivity problem that awaits further scrutiny (see M¨aki 1999).
Many proposals have been recently made to ascribe richer contents to the box of economic actors. In chapter 12, Shaun Hargreaves Heap suggests that judgments of self-worth are to be incorporated as ontological constraints on theories. The idea is that it is an important feature of social reality that people seek to make sense of their social lives: people give accounts of the reasons and worth of their social behavior. In this sense, the social reality encountered by an economist is pre-interpreted by social actors themselves (this view is sometimes called “existential hermeneutics” or “hermeneutical ontology”; see Lavoie 1991).
At the core of this vision is the notion of value arising from the exchange process in the market. Economics has taken the wrong turn “when value, in any meaningful economic sense, is presumed to exist independently of market evaluation through exchange processes . . As the superﬁcial analytical sophistication increased, the formal structure of neoclassical economics somehow lost its behavioral moorings” (1999, 6–7). While Heilbroner and Milberg believe that Keynes was on a relatively right track regarding visionary matters, what Buchanan calls the “Keynesian aberration” is based on misunderstanding this classical ontological vision.