Every time someone like David Leonhardt [ht: ja] writes a review of economic ideas and texts, I realize how narrow their conception of economics truly is—and how, once again, I and many of my friends and colleagues are simply defined out of the discussion.
In the beginning, for Leonhardt, there was Adam Smith. Then, somewhat later, we have the classical liberalism of the Chicago school and the flexible models of Dani Rodrick (who, in his book, refers to Milton Friedman as “one of the twentieth century’s greatest economists”). All three the New York Times writer distinguishes from the contemporary economists Lanny Ebenstein refers as the “utopians working toward and often living in a mythical land, ‘Libertania’”—the contemporary right-wing libertarians.
For writers like Leonhardt, that’s pretty much the beginning and end of economics, the limits of the discipline and of the debate. Everything and everyone else fall outside the walls he and many economists are so intent on erecting and policing.
It’s a view of economic theory focused entirely on markets, as if there are no other ways human beings, now and historically, have organized economic life. It’s a view of economic policy that celebrates markets, with a modicum of government intervention, as if more free-market and more government-regulated forms of capitalism are the limits of the debate of the possible.
That’s the narrow definition of economics that emerges from Ebenstein’s and Rodrick’s books and from Leonhardt’s approving review of those books. Ultimately, it amounts to a call for moderation—in theory and policy—which reduces the relevant debate to one or another version of mainstream (neoclassical and Keynesian) economics.
What Leonhardt and Co. refuse to acknowledge is that mainstream economic theory and policy are what got us into the current mess in the first place, and that mainstream economists have had no answer to the current crises of capitalism—except to impose even more suffering on workers and the vast majority of people in order to attempt to engineer their particular notion of recovery.
In the end, mainstream economists are the real utopians, who imagine that capitalism works (or can be made to work) by being modeled in and through the correct economic theories, which they alone possess.