Myth 1: "Economics is Objective" I 10 Economic Myths Debunked

Have you heard this lie? Economics is an objective science that has nothing to do with politics or morality. Bunk! If you really want to understand the economy, you have to understand politics, and also morality. They're treated as separate fields, separate disciplines. Each has its own experts and specialists, but the three are completely intertwined. In fact, through most of the 1800s, the field of study that we call economics was called political economy. People who studied it saw that the two fields were the same. Adam Smith, the Scotsman who wrote The Wealth of Nations in 1776, is considered the father of economics, especially by conservatives. But he never called himself an economist. He called himself a moral philosopher. Why? Because he was really interested in the meaning of a good society. That’s what it's all about or should be all about. What sort of society do we want? These are basically moral questions. A society has the ability to make its own rules and determine how much inequality is acceptable. How much poverty? Is slavery acceptable? Is it okay for young children to have to work? Should there be a minimum wage? Is it okay for an adult who works 40 hours a week or more to earn so little that her family is impoverished? Is it okay for children of the super wealthy to inherit so much wealth they never have to work a day in their lives? When we talk about morality, we can't avoid the issue of power. How much power should the wealthy have? Is it okay for a corporation to monopolize a market? Is it okay for workers to join together to form a labor union? In the late 19th century, economists began to de-emphasize politics and morals. They started treating economics as more of a science and less of a philosophical study that took into account morality. Alfred Marshall's monumental work “Principles of Economics” established economics as its own science in 1890. But economics, politics, and morality cannot be separated. We need to see the moral underpinnings of economics.

Channel: Robert Reich

Views: 22,116

Keywords: robertreich, robert reich, robert reich inequality for all, inequality media, secretary of labor, economics

Id: 9j3PCm1izjI

Length: 2min 55sec (175 seconds)

Published: Fri May 31 2024