Economics, Politics, and Religion: Social Justice

The purpose of this blog is to discuss topics in Economics, Politics, and Religion from a social justice approach. I am a strong believer in ethics; and I truly believe that no anlytical methodology is strong without an ethical perspective that, at least, attempts to assign people their respective rights.

However, there will be posts that don't analyze all topics through ethics; but all posts will mantain a tangent to one of the three subjects.
Fri Oct 2
Sun Sep 27
Fri Sep 18
Sat Aug 15
Fri Aug 14
I did some photography in China when I visited it last year during Olympics (2008).  Too many beautiful memories.  This is my favorite picture

I did some photography in China when I visited it last year during Olympics (2008).  Too many beautiful memories.  This is my favorite picture

Thu Aug 13

I know I am not rational, but...

For many critical economics students—or at least that’s what I think—the concept that human beings are rational, seems idiotic, to say the least.  And while the ongoing and lengthy economic and financial crisis has taught us that human behavior, economic and/or social, is not always (or mostly) rational, no other theoretical school has come up with a paradigm that is as rigorous and practically applicable as the neo-Classicals (who came up with the rational theory).

For example, cognitive science, also known as decision-making science, has gained a good ground in economics.  While its contributions are many, its biggest and most pronounced contribution is disproving the theory of “rational actor” or “rational choice.”  It uses psychological tests and approaches to make its case.  The implications of cognitive science, while beneficial, cannot, yet, displace the neo-Classical model.  For example, how does one establish a price mechanisms based on cognitive science?  Well, the answer hasn’t been found yet.

The point here is that, unfortunately, many schools, like behavioral, evolutionary, feminist, post-Keynesian, Islamic, and etc, have great rebuttals to the annoying and misleading generalization, simplifications, and often, lies about human and market behavior that are told or assumed by neo-Classicals.  However, none of the schools of thought come close to replacing the neo-classical model in its entirety.  While there are many reasons for this, the obvious one being the sheer amount of time neo-Classicals have had to embed their belief systems in the field of economics.  Its birth comes from Newtonian physics, from which sociologists were impressed and believed that if models were created similar to the ”natural models,” human nature could be explained.

Unfortunately, the bane of scholarship is that, often, methodology derived to accomplish an end becomes a fascination in itself and the end is seldom accomplished.  Similarly, this is what happened with Classical economics.  Economists, especially in 20th century, became fixated with Math, and less with the intent of solving sociological behavior.  Superfluous and arcane generalizations were assumed to assist the ease of mathematical modeling at the cost of the vagueness and/or complexity of human behavior; rationality was one such assumption.  Needless to say, sociological behaviors are much more complex than natural phenomenons.  At least, natural behaviors can be reduced to a simpler format and the model which, while reductive, still maintains robustness.  This is not true of social behavior models.

The point then remains; knowing that humans are emotional beings, who seldom are able to process, let alone compile complete, information, how does one design a model that endogenizes the vicissitudes of human reactions to a single occurrence over time, under different scenarios and circumstances, and creates a holistic model?

For those who already have an answer, please accept the Nobel Prize, already.

Sun Aug 9
Fri Jul 24

revolution in US mainstream econ/finance publication

My dear friends and the few numbered readers:

Please read the latest edition of The Economist.  Specifically, their two articles: the one on economics and the other on finance.  Why is this so significant?  Well, basically, The economist has openly criticized and questioned the validity of the Dynamic Stochastic General Equilibrium Theory, and the Price-theory for economics and finance, respectively.  It will be interesting to see how their future finance and economics articles reflect on their new found love for heterodox theories, but I am excited to see such a development taking place in mainstream media.

Tue Jul 21

Does Relativism exist?

If there were ever a reason I would call myself a conservative would be over the debate of relativism vs. absolutism?  For example, in the realm of politics, is war justified?  Or, is killing justified?  I believe it is; however, unfortunate it is for such a thing to happen.  This argument follows in all realm of existence and thus, it is tangential to all forms of knowledge.  Consequentially, from a neutral perspective (which I believe doesn’t exist) no form of knowledge can be objective.  Therefore, everything in life is subjective.  The latter statement is rather abrupt.  While I have studied philosophy and understand what I am saying, I do not have the discipline to articulate or deconstruct my statement in a manner that might follow perfect logic; nonetheless, I shall make an attempt to do so.

In order to come to any judgment or have an opinion, one must reject the counter opinion.  In other words, a dichotomy between true and false has to be created.  It is impossible to exist in a realm of knowledge where both true and false are true (in relative terms).  This occurrence can exist temporarily, which one would identify as being unsure or confused.  However, such a phenomenon is not possible in a tautological sense.  If that were the case, then total uncertainty would exist.  Human beings spend their lives trying to change uncertainty into certainty.  This is simply put, human nature.

We, as human beings also do not have the mental ability to take all dichotomies and/or grey-areas and process them—through reason—to come to our own set of conclusions about everything.  Therefore, we adhere to belief systems that define true and false for us.  This doesn’t mean that we accept everything within that belief system blindly, but we accept most things unknowingly.  Since it is almost impossible that everybody will believe in the same thing, or have the same definition of true and false (which itself is impossible to do), conflicts will exist and therefore, a need to settle them.

While human initiatives to create pluralism should counter tendencies to exercise violent methods to settle dispute, the idea of pluralism also exists in a dichotomy of true and false.  Those who believe in pluralism, agree that socially fabricated societies are pervasive; consequentially, laying a ground for conflict between those who believe in pluralism and those who don’t.

As long as people believe in true vs. false, differences will exist and attempts will be made to justify one side over another through violence, diplomacy, or isolation.

Mon Jul 20