The coming of age of economics

If the ‘Hudson Economic Theory’ is correct — that the world economic system is essentially self-correcting leading to ‘least effort’ just like any other physical system — then it gives economists more scientific opportunities than so far. Instead of mainly being commentators on the disruptive effects of individual government decisions on their economies — assuming that governments have a ‘right’ to intrude! — then¬†economists can be much more detailed and objective observers of human nature, just like evolutionary biologists.

Whereas the latter are concerned with quite a welter of instincts and consequent emotions that have been triggered off and shaped over approaching 4 billion years since life began, economists are more narrowly concerned with only a few of such.

One is the way in which something like 6 million years of living on the savannah in small groups has affected the basic selfishness-sociality balance. The other is the way that money has entered the scene since (probably) the beginning of our species — 200,000 years ago — as being a very convenient method of demonstrating personal social power-ranking within groups.

Because status ranking in groups leads to a peaceful way of females being able to choose suitable males of good genetic ability as fathers for their children — instead of males sometimes having to fight to death, as with many other mammalian species — then economists now have a satisfactory basic ‘law’ of economics instead of the previous assumption that they made — that man is mainly selfish. He’s not.

The existence of, and the exploitation involved in the practice of rank-ordering is also modified by living in groups where altruism can also contribute to group efficiency. Groups fight one another quite selfishly when necessary –and always will do — but they are also capable of basic welfare internally.

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