WHY ECONOMICS ISN’T BORING TO ME

I’m neither an economist nor the son of an economist. But I have been puzzling over something for a while. It’s how individuals could each have a degree in economics & come to totally different conclusions.

For example, the new heartthrob of the Democrats, Alexandria Ocasio-Cortez, apparently has a degree in economics & is a full-blown socialist. 

On the other hand, Walter Williams has spent much of his adult life teaching economics at the university level & is a rock-ribbed economic conservative.

My question has at least in part been answered. There are at least 2 basic theories about how economic transactions should be done.

The first (objective view of economics) is based on the idea that the process is more equitable & just if an economy is managed. This view necessitates there being a governing authority over a nation’s economic system. What is the expression of this belief? Socialism. Planned or managed economies. 5-year economic plans. Government intervention to pick winners & losers.

The other major view (subjective view of economics) sees the process of economic transactions as a dynamic thing that in a sense has a life of its own. People simply participate in it, & it is constantly changing based on the changing desires & demands of the participants. What is the expression of this belief? A free market, where people are at liberty to make their own decisions as buyers, sellers, producers, etc.

This difference in views determines how someone will see the process of economic transactions. The objective view requires that there be a class of people who can predict what will happen in the future. They will (hopefully) base economic policies on what will be the fairest for the most people.

This view assumes a lot. First, it assumes that these “smart people” can somehow predict the future. Second, it assumes they will use this power for the benefit of the people they are supposedly smarter than. These are the assumptions that have brought us such failed experiments as the Soviet Union, Cuba, & today’s Venezuela.