The Morality of Radical Economics: Ghost Curve Ideology and the Value Neutral Aspect of Neoclassical Economics

by Ron P. Baiman

Overview

This book is in equal parts a treatise on morality and economics, a critique of neoclassical orthodoxy, a brief for replacing mainstream economics with a radical political economics, and an argument for the abandonment of neoliberal capitalism in favor of democratic socialism. It includes a detailed proposal for a "demand and cost" alternative to "supply and demand" analysis and an in-depth technical critique of both neoclassical "high theory" and "applied microeconomic analysis" demonstrating that these are not only infeasible or immoral, but have directly contributed to public policy disasters. Further, the book suggests that only a moral economics in the form of radical political economy can address the looming economic and environmental crises of today’s world.

Baiman begins with an introduction to morality and ethics in both general sciences and in economics in particular. He then guides readers through evidence of how neoclassical economics has not only failed to remain objective and value-free, but has become an ideology of apologetics protecting an immoral system. In addition to breaking down real-world examples to demonstrate his assertions, Baiman analyzes a theoretical Utopia design exercise. He concludes by arguing that the only form of economics that supports widely shared human values—such as social equity, democracy, and solidarity—is so-called "radical economics", and that all true economics science should be directed toward achieving more socially productive economic activity. An invaluable guide to morality and economics, this book will appeal to researchers and teachers looking to change the way we think about economics, policy, and society.

Product Details

ISBN-13:	9781137455581
Publisher:	Palgrave Macmillan US
Publication date:	09/01/2016
Edition description:	1st ed. 2016
Pages:	314
Product dimensions:	5.83(w) x 8.27(h) x (d)

About the Author

Ron P. Baiman teaches economics in the MBA program at Benedictine University, USA. He has written numerous academic and policy papers, served for many years on the Editorial Board of the Review for Radical Political Economics, and co-authored and co-edited the Choice award-winning collection, Political Economy and Contemporary Capitalism.

Table of Contents

Table of Contents

Part I

1 Introduction

2 The Philosophy and Science of Morality

3 Economics as a Moral Science

Part II

4 The Supply and Demand Story: A Dystopian Counter Factual

5 Ghost Curve Ideology: The Supply Curve Generally Does Not Exist So Why is it a Core Concept in Almost Every Economics Text Book?

6 Aggregate Supply and Demand in the Macroeconomy: An Ill-Defined and Misapplied Fiction

7 The Money Supply and Demand Market: The Greatest Myth of them All

8 The International “Free Market” for Trade and Investment: Capital’s Global Power Play

Part III

9 Equity cannot be Separated from Efficiency

10 From Amoral High Theory to Immoral Applied Theory

11 The Morality of Radical Economics

What People are Saying About This

From the Publisher

“Neoclassical economics pretends to be "value neutral," which is untrue. You can't make a statement about how the economy functions without adopting a set of values. From "ghost" supply curves in the textbooks to the realm of high theory, Ron Baiman demolishes the pretenses and presents relevant value-based alternatives.” (Lance Taylor, Arnhold Professor Emeritus, New School for Social Research, USA)

“Ron Baiman has given us an interesting account of the role of values and morality in economics, taking issue with the conventional view that economics is a value neutral discipline. The book makes a strong case that economics cannot be separated from the values of economists.” (Dean Baker, co-director Center for Economic and Policy Research; coauthor of “Getting Back to Full Employment”)

“Baiman provides a refreshingly honest guide for everyone who has ever tasted a bit of formal neo-classical economics and found it implausible... He offers a deep critique of the favorite machinery of neo-classical economics ... makes solid suggestions concerning how we can start to replace neoclassical rationalizations with radical value-sensitive theories and applications. His conclusion is clear. We can only get a useful economics when economists consciously accept as their goal the improvement of social and human well-being.” (Joseph J. Persky, Professor of Economics, University of Illinois at Chicago, USA; author of Does "Trickle Down" Work? and When Corporations Leave Town)