Lost in Translation: Scarcity and Small Government Within Mainstream Economics

Abstract

Mainstream economic theory entails a series of non-traditional definitions which serve to obfuscate how the economy works and create a narrative that mainstream economists often refer to as “the economic way of thinking.” Two such narrative creating topics within the mainstream arsenal are the stories of scarcity and small government. Mainstream theory distorts these concepts so that their definition in economics texts differ dramatically from what the terms mean in regular parlance. Post-Keynesian Institutionalist (PKI) economists can serve as translators of this mainstream narrative. This essay uses PKI analysis to show that the mainstream narrative serves to conceal a vision of society that is profoundly antisocial, narrowly conceived, and financially stratified. Unfortunately, this mainstream obfuscation has itself become a social institution that is one of the major barriers blocking desperately needed political change. By serving as translators, PKI economists can help to tear down this destructive institution.