Re: OBJ Economics: Inevitables

["Mason A. Clark" <masonc@xxxxxxxxxxxxx>]

I proposed the development of two economics: objective and subjective.
As a beginning I submitted a list of "inevitables" -- call them axioms
if you wish -- for Objective Economics.

I confess of my naivete by admitting my surprise at the quarreling
caused by at least one item on this list.

The instructive, lengthy (and now tiresome?) exchange between Per
Gunnar Berglund and Bruce McFarling regarding the measures
to be used led to the addition of 10:

10. Comparisons of living conditions across time are not objectively
      possible because human contentment is inherently subjective.

Corollary 10.1. All measures of economic *growth* are subjective.

This is, of course, the problem with the CPI.  How can we compare
a 1929 Model A Ford with an air-conditioned 1997 Saturn costing
fifteen times as much?  Who is to say the price has gone up?

The nominal standard of living is much higher in 1997 than in 1957.
Who is to say that people are living better in 1997?  (I don't mean to
trigger are tirade here -- please take it elsewhere.)

QUESTION:  Using the hard-science meaning of "objectivity" -- whatever
you think that is -- what is the state of objectivity in economics?

QUESTION:  Is it useful to try to build an objective theory of economics?

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Here is a slightly revised and expanded list of "inevitables" and
a few "not inevitables" to bolster the definition of "inevitable":

Foundations of an Objective Economics

Inevitables:

1.  Growth of population, rate uncertain  ( perhaps 1.01 % )

2.  The market, either free or as important black market (e.g. drugs)

3.  The existence of money: a means of exchange and storage

4. The non-zero cost of using the Earth as a resource.
    replaces  4.  The finite material contents of the planet Earth

5.  The confinement of Earth inhabitants to that planet
     NB: I will not respond to any challenge to this.

6.  Advancement of science and technology

    NB: As one effect of that advancement, the resources
    of the planet Earth are indeterminate, as distinct from its
    material content. Likewise, energy is indeterminate.
    This does not imply that depletion is impossible.

7.  Human greed; on the part of some -- if not all -- people, the desire
for more

8.  Humans have a wide range of ability, which implies that *if* paid
     according to ability, a wide range of income and wealth.

 Corollary: 8.1.  Some wealth redistribution is a necessity for
  long-term stability

9.  Among humans are those who will grasp for power, and among
     those some will be corrupted by power and do harm

Corollary:  9.1.  Some regulation of the market & entrepreneurship

10. Comparisons of living conditions across time are not objectively
      possible because human contentment is inherently subjective.

Corollary 10.1. All measures of economic growth are subjective.

    This does not make economic theory impossible;
    just not predictive as to human welfare.

11.

12.

Not Inevitables:

1.  Democracy or any other specific political system

2.  Capitalism or any other specific economic system

5.  Continued growth of free-market-determined gross production

6.

7.