Meta-economic Matters
Two Questions
Q.1: What is the nature of a prosperous society? How can a government influence the economic activities of autonomous individuals for the benefit of society generally?
Q.2: How exactly should a government intervene so as to support prosperity in any particular situation given certain economic factors?
THEE can answer Q.1 only: its framework enables understanding of economic activities and interventions, without determining precisely what must be done. This orientation is meta-economic, not economic.
Q.2: is valid and important, but remains the responsibility of particular governments in particular societies at particular times. Their choices will be a function of:
However, in every specific case, meta-economic choices will be made implicitly or explicitly.
The task here is to clarify the framework for those choices, including how that well-recognized duality in economics, rational v political, manifests and can be resolved.
Meta-economic Framework
As explained, constructing the follows from the application of the . In this context the government interacts with society (rather than specific individuals) and aims to benefit society and itself (as a government).
The TET diagram shows the ModesModes are the context of approaches and contain values and principles that can be widely accepted. Where different approaches refer to methods that tend to conflict and be incompatible, modes are compatible. with their associated government imperatives.
The forces driving any government are:
► internal: desire for a prosperous stable society (and re-election)
► external: economic pressures and global forces.
No program is proposed here for any society or its government. However, the list of imperatives suggests that society will suffer (and the government, if democratic, may not get re-elected) if they are not heeded e.g.
Remember the Qualities of a Valid THEE Framework
Sample Meta-economic Initiatives of Governments
Governments typically seek to foster prosperity, even if it is not their top priority. They also recognize commerce is based in values, even if these are somewhat alien to the culture. These initiatives are not always followed through.
Initiative-A
pushes for ever greater entrepreneurial drive in society.
Initiative-B
goes the other way and emphasizes the importance of state intervention. Such governments tend to emphasize their role as guardians, picking winning industries and firms, and redistributing income.
Initiative-C
emphasizes provision of state regulation of key markets: which is rather important; whilst:
Initiative-D
emphasizes the protection of domestic industries—reasonable within limits and in certain circumstances: but not if the protection is no more than a transfer of money from tax-payers to vested interests.
Note: Government strategies are often blunderbuss affairs and forget that individual autonomy lies at the root of commerce. Governments may need to intervene, but doing so effectively is a difficult political endeavour. As will become evident, principles from all Modes are required. As in previous frameworks, critical issues in the meta-economic context are found to emerge in a logical step-wise fashion.
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Start with the meta-economic foundation of prosperity: individual-based market-centred activity.
All posted material is part of a scientific project and should be regarded as provisional. Visitors are encouraged to think through the topics and propositions for themselves. Copyright © Warren Kinston 2009-2016.
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