Definition & Reality in the General Theory of Political EconomyCool, Thomas (Thomas Herman Anthonius Maria)
Science
Definition & Reality in the General Theory of Political Economy
Cool, Thomas (Thomas Herman Anthonius Maria)
Economics; Political science
Since the problem is found to be equal across nations and across time,
we may look for common factors. The basic factor that we can identify
is the Trias Politica structure of Western democracies. The present
checks and balances are imperfect. This structure appears to allow too
much leeway for forces that are detrimental to the economic well-being
of the population at large, their economic security and their
possibilities for the pursuit of happiness. The structure of economic
policy making allows politicians, bureaucrats and special interest
groups too much room to distort the contribution of economic
scientists.
The conceptual scheme of the Trias Politica was a useful ladder to
climb out of the situation of feodality and absolute kings. But a
ladder is not a goal in itself. Democracy is a living concept and can
develop further. If we find that the Trias Politica fail with regards
to our needs, then we should adapt it.
In the past there have been two steps towards more independence and
more checks and balances in the management of the economy. First there
was the independent Central Bank, and then the separate Council of
Economic Advisers to the government (or other planning body). Indeed,
the situation after the Second World War has been much improved:
instead of a Great Depression we only got a Great Stagflation.
Okun (1983), “The economist and Presidential leadership”, provides an
recommendable account of current practice. Two quotes are particularly
relevant, one that observes current partiality and one that advises
impartiality:
“Given these constraints, members of the Council of Economic Advisers
are clearly recognized as the President’s men. If they speak publicly,
they will be identified as spokesmen for administrative positions.”
“One wishes for a more effective way of influencing public and
congressional opinion in the areas of professional consensus. There is
a role to be played by a Supreme Court in the profession, although a
less important one than that actually fulfilled by the Council and the
Bureau of the Budget in recent years.” (p580)
We are advised to go one step further than the current situation, and
create a scientific Economic Supreme Court safeguarded within the
Constitution as an equal partner next to the three of the Trias
Politica. Its role will be limited, but crucial.
The argument is not that politicians could not be qualified in
economics. The argument is the balance of power. Having an Economic
Supreme Court increases democracy, since it improves the quality of the
checks and balances. It caters to the civic right of good government
and to the right to know.
The crucial considerations are:
· The first point is _theory dependence_. The State will decide on its
policy while using an economic model. Hence policy is directly
dependent upon the state of economic theory. Who is going to decide
what the current state of theory is ?
Public-domain text, read in full here on John Shaqi.
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