Economic Truth Research Articles

A Trinity of Saviours—Parent, Teacher and Child: Human Capital Theory and Early Childhood Education in New Zealand

THERE IS A CONTEMPORARY trinity, of mother, child and teacher, who together ‘grow’ both the present and future workers of the national economy. Economic truths assert that mothers can best meet their young child's needs by being in the workplace, while entrusting her child to a skilled educator. Human Capital Theory discourse has penetrated the lives of our youngest citizens. Human Capital theorists maintain that state investments in early childhood education will be cost effective; will pay long-term economic dividends.

Economy suspended: the possibilities of a Badiouian business ethics

In the philosophy of Alain Badiou, ethics can only arise in relation to an evental truth procedure that breaks from the economic logic of a situation. Further, because for Badiou there cannot be economic truths per se – rather, economic matters must be understood in their relation to one or more truths in the domain of love, art, science or politics – a Badiouian business ethics would look entirely distinct from any ethics that simply places limits on certain kinds of economic activity. Although Slavoj Žižek, among others, has suggested that this marks an essential weakness in Badiou's economic/political theory, it may actually be the greatest strength of his position. Within a capitalist system, a Badiouian business ethics would then be a question of mobilizing economic resources in order to serve the ongoing construction of a truth procedure. For a business to be considered ethical on Badiou's terms, it must break – and continue to break – from the dominant logic of capitalism and its merely economic pursuit of profit maximization.

Aufstieg und Niedergang einer wirtschaftswissenschaftlichen Wahrheit

This article received soon after publishing in 2010 the status of an economic truth, which was used to justify austerity measures. In early 2013 it was revealed thatthe paper had an erroneous data base. Here it is discussed by which mechanisms an „economic truth“ is produced and circulated and what is needed to question and destroy such a truth.

Unblocking a Free Market Perspective in Labor Economics

(2008) Walter Block presents a seemingly comprehensive free market perspective on the economics of the labor market. From this perspective Block discusses the economics of wage determination and the minimum wage’s effects on the labor market; the economic impact of labor unions and unionized regulation as well as the economics of unemployment insurance and academic tenure; and he touches on immigration, redistributive justice, and slavery reparations. There should be no surprise that the free market perspective allows Block to argue that regulation and intervention in the market cause imbalances and disequilibria and are therefore economically inefficient and undesireable. But Block goes one step further and argues that all kinds of regulation or tampering with a free market setting for voluntary interaction of individuals are simply wrong. There is no doubt that Labor Economics from a Free Market Perspective is a very provocative book. On the one hand, it is a treatise on labor economics covering basic economic truths such as the determination of wages and the effects in the labor market of enforced minimum wage laws and unionism. Just like in Block’s 1976 book

A bio-economic management strategy evaluation for a multi-species, multi-fleet fishery facing a world of uncertainty

A bio-economic analysis was conducted for two fisheries using a multi-species size-based meta-population model built using the BIOMAS modelling system. The model was built to represent the prawn fisheries of northern New South Wales, Australia and calibrated against 26 years of catch and effort data from this region. A number of alternative management strategies, including the use of more size selective gear and a cap on total effort, were evaluated for their impact on the sustainability of the fish stocks and the profitability of the fleets as well as their robustness to future biological, climatic and economic uncertainties. Although the differences in management strategies were blurred by the uncertainty incorporated into the model there were still some very interesting high-level insights to be gained from the analysis. The modelled prawn species appear to be much more robust to changes in management strategies and product prices than the fleet profits, suggesting the stocks are less vulnerability to such uncertainties than the fleets that harvest them. We also found larger differences in profitability from changes in product prices than from changes in management strategies, indicating that strategies to protect product prices may be of more importance to the profitability of the fisheries than changes to fishing gear or effort levels. Such results highlight the complexity of multi-species, multi-fleet fisheries and the importance of including all relevant species and fisheries in any management strategy evaluations. This complexity can however sometimes mask simple economic truths, such as the need for strategies to maintain the market price of locally caught seafood products under the increasing pressures of international competition.

Book review: Imperialism, by J. A. Hobson

J. A. Hobson Imperialism, Spokesman: Nottingham, 2011,334 pp: 9780851247885, 19.99 [pounds sterling] (pbk) J. A. Hobson's Imperialism was first published in 1902, at the peak of British imperialism, when imperial expansions fostered national imagination and pro-imperial propaganda blinded many citizens both in England and overseas. J. A. Hobson deals with imperialism in the way Marx dealt with capitalism: he unveils its financial instruments, political mechanisms and ideological arrangements. The study consists of two parts--the economic basis and the ideological basis of imperialism. The division represents somehow the Marxist dichotomy of base and superstructure, with the first comprehending the forces and relations of production, and the latter referring to derivative products of economic life as culture, science, ideology, etc. The first part, 'Economics of Imperialism', illuminates the drives for imperialism and also the financial and political mechanisms of imperialism. The author makes a distinction between colonialism and imperialism, and this distinction is crucial for understanding his work. 'For convenience, the year 1870 has been taken as indicative of the beginning of a conscious policy of imperialism' (p. 57). What is the dividing line, the political cordon sanitaire between colonialism and imperialism? The author argues that traditional colonialism was the outlet of surplus population. It led to new permanent colonial settlements in the overseas territories, mostly territories with favourable climate conditions and low local population. To protect British people overseas, British rule was also established there. Imperialism, Hobson points out, means political annexation with colonial settlements. Imperial domination is defined as the targeting of populated areas with a temporary corpus of navy, diplomats, military, clerical and administrative staff, instead of permanent colonies. Hobson argues that imperialism is masked by the old ideas of colonialism--the excess of population and productive powers--yet these ideas veil the complex financial and political mechanisms of new imperialist developments. The first myth is the myth of overproduction. As imperial mythologies imply, overproduction derives from efficient labour, productive technologies and the racial superiority of the British population. This is, according to Hobson, one of the ill-recognised economic truths. Commodities produced within a country cannot be consumed within the country, because some people are underpaid, and some others accumulate financial means far beyond their needs and demands. The resultant overproduction comes from 'Mal-distribution of consuming power which prevents the absorption of commodities and capital within the country' (p. 107). Elites accumulate financial means far beyond their demands; foreign territories are needed not for surplus population, but for reinvestment of surplus capital, accumulated via mal-distribution. So the second myth is the myth of overpopulation. It is not colonial settlers but private financial investments that have to be protected by British rule in overseas territories (p. …

Teaching the Bible at public universities in South Africa: A proposal for multidisciplinary approach

How should the academy teach the Bible? I noted two challenges to this endeavour. Firstly, the Bible has been used as superstructure to justify and to solidify colonialism and apartheid in South Africa which resulted in people to mistrust the way the Western missionaries interpreted the Bible. It also gave birth to the inception of African Independent Churches (AIC) and an urgent need to reinterpret the Bible from the experiences of Africans. However, the initial question remains how the academy should teach the Bible. The complexity of this question is that despite the Bible’s association with a colonial legacy, the ordinary people did not stop reading the Bible and to make meaning of their lives from it. This study justifies the place of the Bible in public universities in South Africa and proposes ways the academy should teach the Bible. This study suggests a two-pronged approach to Biblical Studies at public universities. Firstly, the academy should critically engage the ideological presupposition underlying the theories used in the academy. Secondly, the academy must be open to the fact that the Bible is part of popular culture; hence, the academy should critically reflect how the Bible is used in public space. Therefore my hypothesis is that the academy should further focus on critiquing ideological inclinations that underline established truths in addition to focusing on the historical meaning of the Bible and establishing contextual similarities. Teaching the Bible should focus on analysing cultural, political and economic ideological truths that find support from the Bible. I propose that this line of thought is possible through cultural studies and/or interdisciplinary methods.

The Quants’ Impact on Management Education - And What We Might Do About It: A History-Framed Essay Rethinking the MBA Program

“I often say that when you can measure what you are speaking about, and express it in numbers, you something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely in your thoughts advanced to the state of Science, whatever the matter may be.” Baron William Thomson Kelvin (1824-1907) - From 'Electrical Units of Measurement', a lecture delivered at the Institution of Civil Engineers, London (3 May 1883). “The saying often quoted from Lord Kelvin (though the substance, I believe, is much older) that where you cannot measure your knowledge is meagre and unsatisfactory, as applied in mental and social science, is misleading and pernicious. This is another way of saying that these sciences are not sciences in the sense of physical science, and cannot attempt to be such, without forfeiting their proper nature and function. Insistence on a concretely quantitative economics means the use of statistics of physical magnitudes, whose economic meaning and significance is uncertain and dubious. (Even ‘wheat’ is approximately homogeneous only measured in economic terms.) And a similar statement would apply even more to other social sciences. In this field, the Kelvin dictum very largely means in practice, if you cannot measure, measure anyhow! That is, one either performs some other operation and calls it measurement or measures something else instead of what is ostensibly under discussion, and usually not a social phenomena. To call averaging estimates, or guesses, measurement seems to be merely embezzling a word for its prestige value. And it might be pointed out also that in the field of human interests and relationships much of our most important knowledge is inherently non-quantitative, and could not conceivably be put in quantitative form without being destroyed. Perhaps we do not know that our friends really are our friends; in any case an attempt to measure their friendship would hardly make the knowledge either more certain or more ‘satisfactory’! Knight F. H. 1940. What is Truth in Economics? Journal of Political Economy 48(1):18n

Ronald Coase and the Methodology of Economics

Ronald Coase was skeptical that economics is a positive science in the sense made famous by Milton Friedman. According to Coase, that notion is inaccurate on two counts: economists accept much theory without bothering to test it empirically, and much of their empirical work does not test theory. Coase’s view is that we seek (and find) truth in economics via a competition of ideas that uses an eclectic variety of methods. I argue that, as a description of what empirical economics is about, much of Coase’s critique is valid, even understated. However, I contend that Coase failed to appreciate some of the costs and benefits implied by his critique. For example, by pretending to be a positive science, economics gains a certain rigor that is useful. But it pays for this rigor with a narrowness of scope. On the other side, I argue that progress is hindered by the easy acceptance of nonscientific evaluations of competing theories.

Realism: Austrian vs. Neoclassical Economics, Reply to Caplan

This Reply is part IV of an ongoing debate that first began with Caplan (1999) as part I. Part II can be found in Block (1999), and part III in Caplan (2002?).Overall, the debate concerns the issue of whether the Austrian or the Neo-Classical vision more closely approaches the truth in economics, with regard to such issues as methodology, indifference, envy, verschtehen, continuity, demonstrated preference, welfare economics, public goods and cardinality. The present article is limited to replying to section II. Probability, of Caplan (2002).

The meaning of poverty

r HE BELIEF that poverty has been virtually eliminated in Britain is commonly held. It has been reiterated in parliament . and the press and has gained authority from a stream of books and papers published by economists, sociolc)gists and others in the postwar years.l In the main the proposition rests on three generalizations which are accepted as facts. The first is that full employment, combined with larger real wages and the enormous increase in the numbers of married women in paid employment, has brought prosperity to the mass of the population. The second is that there has been a marked redistribution of income from rich to poor and, indeed, a continuing equalization of income and wealth. And the third is that the introduction of a welfare state has created a net-though some prefer to use the metaphor a feather bed-which prevents nearly all those who are sick, disabled, old or unemployed from falling below a civilized standard of subsistence. Each of these generalizations needs to be examined carefully. We might, for example, ask whether a population of the present size, with 400,000 registered unemployed, constitutes a society with 'full employment'; or whether to the oicial numbers of the unemployed, we should add many thousands of married women, handicapped persons and persons of pensiollable age who do not register with employment exchanges, but who would take certain forms of paid work, particularly light or sheltered work, if it was available. Again, we might ask whether postwar Britain justifies the epithet of a 'welfare' state in relation either to contemporary needs and resources or to the social services which existed during and before the war. But perhaps the crucial concepts embedded in these three generalizations which should give us pause are those of 'prosperity', 'equality' and 'subsistence'. I cannot attempt to deal comprehensively with these elusive concepts. I shall merely try to say something about the meaning of 'subsistence', which appears to govern much contemporary thought about the subject of poverty. My main thesis is that both 'poverty' and 'subsistence' are relative concepts and that they can only be deSned in relation to the material and emotional resources available at a particular time to the members either of a particular society or different societies.

The `White Slave Trade' and the Music Hall Affair in 1930s Malta

The music hall affair in 1930s Malta serves as a window into wider social, political issues embodied in the recurring furore that was `white slavery'. Sparked by accusations in London newspapers about sexual exploitation of English women who had come to work as music hall artistes, politicians, newspaper editors, the police and the church in Malta addressed the issue. Although the claims about English women were not true, the stories raised larger questions about prostitution in Malta's night-time leisure economy, and sexual exploitation of foreign artistes and Maltese barmaids did occur in this context. The British reaction followed the pattern of response in other colonies: military authorities chose to focus on the health threat to their personnel posed by what they saw as an indigenous problem of prostitution, rather than acknowledge the effects of colonial rule on local society. Maltese authorities chose to avoid political and economic truths of colonial rule as well: they decided to make the immoral character of the women involved the problem to be addressed. The music hall affair did not champion international human rights, but reflected parochial fears of foreigners and colonial others.

Echoes of Divergence Within: The Politics and Politicisation of Nigeria's Debt Relief

Nigeria has been weighed down over the years by a huge debt overhang and has had to contend with several reform programmes prescribed by the multilateral institutions of the IMF and the World Bank. Ordinary people, especially women, children and the under-privileged, have been the worst victims of the fallout from these reforms. Recently, Nigeria was granted debt relief to the tune of US$18 billion by the Paris Club of creditors, with the proviso that the country would pay a total of US$12 billion of its remaining debt, in two equal instalments, within a specified period to the Club. Nigeria has since met this obligation and exited from the Paris Club debt trap. However, debt relief, which ought to have elicited public gratitude, instead unleashed a wave of cynicism. Opposition to the relief package emanated from popular perception of the Paris Club members as institutional loan sharks and authors of the gross contradictions in the Nigerian economy. This article distils these contradictory opinions. It argues that the optimism which the Paris Club of creditors expressed in their press release, and which the Nigerian Government holds as a sacred economic truth, namely that the debt trade-off would free resources for the rapid development of Nigeria, was hopeful at best and manipulative at worst.

Objectivity and Subjectivity in Contract Law: A Copernican Response to Professor Shiffrin

This is a response to Seana Shiffrin's recent and important contribution to the continuing debate whether there is a universal moral or economic truth at the heart of contract law. While she adopts an unduly simplistic view of the divergence of morality in promise-keeping and contract law, her most significant advance toward a general theory of promise and contract is her identification of the critical moment at which the interposition of the public in a private matter occurs or is contemplated. This essay carries that theme forward, suggesting that a universal justification for contract law is not possible because the law, by its very nature, objectifies (publicly or with that implicit threat) what was heretofore a private relationship.

Suggestions for teaching intermediate macroeconomics: A praxeological perspective

j oseph T. Salerno (2004) has presented us with the choice of pursuing economics as a vocation or profession. The focus of the vocational economist is the pursui t of truth whereas the professional economist works primari ly to earn an income, enhance his reputation, or influence political decisions. This dichotomy also presents itself when economics professors seek to instruct courses for economics majors, but in the case of education, the question is do we want to train our s tudents to be vocational or professional economists. For Misesian professors teaching intermediate macroeconomics, there is a tension between leading students in the development of sound economic theory and providing them with a working knowledge of the muhi tude of macroeconomic models they will encounter in graduate studies. Should teachers of undergraduate economics focus more on economic truth that helps students unders tand the way things really are or more on various macroeconomic models and hot research topics and techniques they may see if they choose to go on to graduate study? What follows are suggestions for meeting the challenge of intermediate macroeconomics by providing intermediate undergraduate s tudents with a working knowledge of the disarray we call mode rn macroeconomics, evaluated with sound economic theory one derives within the Misesian tradition.

Economic Impact Studies: Instruments for Political Shenanigans?

Most economic impact studies are commissioned to legitimize a political position rather than to search for economic truth. Often, this results in the use of mischievous procedures that produce large numbers that study sponsors seek to support a predetermined position. Examples are selected primarily from the reports of ostensibly expert consultants that illustrate 10 of these mischievous procedures: including local residents; inappropriate aggregation; inclusion of time-switchers and casuals; abuse of multipliers; ignoring costs borne by the local community; ignoring opportunity costs; ignoring displacement costs; expanding the project scope; exaggerating visitation numbers; and inclusion of consumer surplus. The political payoff of these shenanigans is discussed.

Half a pound of tuppeny rice

PurposeSeeks to reflect on the way that truths about commerce and labour have been captured in seemingly “innocent” rhymes.Design/methodology/approachFictional prose.FindingsThe piece contemplates the trap into which a tradesman might fall when at the mercy of fluctuating demand and tempted to give up his tools. Alternative means of income are weighed up and a moral about managing money is suggested.Research limitations/implicationsEncourages further consideration of the way that common rhymes represent the economic and social truth of their times.Originality/valueA creative representation of the origins of popular verses that deal with working lives of the past.

Book Reviews: Selected Essays by Frank H. Knight. Volume 1: What Is Truth in Economics?, Selected Essays by Frank H. Knight. Volume 2: Laissez-Faire: Pro and Con.

Book Reviews: Selected Essays by Frank H. Knight. Volume 1: What Is Truth in Economics?, Selected Essays by Frank H. Knight. Volume 2: Laissez-Faire: Pro and Con.

Realism: Austrian vs. Neoclassical Economics, Reply to Caplan

This Reply is part IV of an ongoing debate that first began with Caplan (1999) as part I. Part II can be found in Block (1999), and part III in Caplan (2002?).Overall, the debate concerns the issue of whether the Austrian or the Neo-Classical vision more closely approaches the truth in economics, with regard to such issues as methodology, indifference, envy, verschtehen, continuity, demonstrated preference, welfare economics, public goods and cardinality. The present article is limited to replying to section II. Probability, of Caplan (2002).

Frédéric bastiat’s views on the nature of money

What is money? This is a question for the ages. Humanity has risen into complex society and experienced tremendous economic development and high cultural achievement through the use of money. It has foundered or even been destroyed when money has been undermined. Ignorance of the nature of money should therefore be the central economic issue for society. Frederic Bastiat was a French businessman who lived during the first half of the nineteenth century (1801–1850). In the last few years of his life he was elected to the national assembly and began a prolific career as a writer on topics of economics, public policy, and political issues of the day. His highly effective writing style includes the use of humor, ridicule, dialogue, irony, exaggeration and, most important, logical deduction and the process of elimination. He is like a mystery sleuth in search of economic truth and this style has made him the undisputed champion in economic polemics. He continues to earn high praise from journalists, economists, and most important, from educated readers more than 150 years after his death.1 In contrast to the universal respect and admiration for his literary skills, Bastiat has not been admired as an economic theorist. His efforts at economic theory have been roundly criticized and characterized as the efforts of an amateur or even a crank. We can list the eminent economist Joseph Schumpeter and Nobel Laureate F.A. Hayek, two outstanding economists, among the critics of Bastiat as an economic theorist. I have re-examined Bastiat’s contributions to economic theory and have found the charges against him to be unsubstantiated. In terms of economic theory, Bastiat is widely knowledgeable, keenly discerning, highly competent, and very creative. Furthermore, I have concluded that the central criticisms of