Neo-classical theory is simply an inappropriate tool to analyze and prescribe policies that will induce development. It is concerned with the operation of markets, not with how markets develop. How can one prescribe policies when one doesn’t understand how economies develop? The very methods employed by neo-classical economists have dictated the subject matter and militated against such a development. That theory in the pristine form that gave it mathematical precision and elegance modeled a frictionless and static world. When applied to economic history and development it focused on technological development and more recently human capital investment, but ignored the incentive structure embodied in institutions that determined the extent of societal investment in those factors. In the analysis of economic performance through time it contained two erroneous assumptions: one that institutions do not matter and two that time does not matter.
The essential point here is that while the post-Humean, constant-conjunction, view of science entails the goal of control along with the amelioration of events and states of affairs, the transcendental realist perspective offers instead the goal of human emancipation. For while on the former account the point is (if and where possible) to fix certain event(s) x in order to determine or control other event(s) y, on the transcendental realist understanding the aim must (or at least can) be to transform structures in order to enhance the scope for realising human potential, to broaden opportunities. Social structures as conceived here do not determine what happens. They do though make a difference by constraining and (thereby) enabling. Now if in this aspect they are no different to natural structures or mechanisms, they are so in that social structures, unlike most natural mechanisms, can be not only utilised but also transformed. On this account economic policy can substitute for the traditional objective of controlling the future, one of replacing unwanted, unneeded and overly restrictive structures by those that are wanted, needed and empowering.
Dokumentärserie av Adam Curtis som alla bör se, den visar hur vetenskap och målmedvetet planerande legat bakom skapandet av konsumtionskulturen och eliters syn på demokrati historiskt vilket lett dem till att försöka att styra och dirigera människors beteenden. Den lyfter viktiga och intressanta frågor som ekonomer hållit tyst om alltför länge, denna historia och kunskap om makt och propaganda borde även vara en självklar del utav nationalekonomiutbildningen, framförallt med tanke på den roll multinationella företag och public relations har i dagens värld.