Monday, July 10, 2017
The death of homo-economicus
Continuing the last post, Sam Bowles, a Research Professor at the Santa Fe Institute, discusses the failed economic ideology of homo economicus. It "posits a one-dimensional image of [...] a rational, utility-maximizing agent, largely driven by the so-called 'invisible hand' of the marketplace." Which in turn is a rationalization for greedy self-interest under the assumption that this will benefit everyone but it does not. Bowles research shows that quite the contrary it is when we cooperate for the mutual benefit of everyone that we all prosper. And this needs to be incorporated into the way we frame economics.