Opinion (Andrew Sheng, President of the Fung Global Institute, adjunct professor at Tsinghua University, Beijing, Xiao Geng, Director of Research at the Fung Global Institute): “Given the crisis weighing down the world economy and financial markets, it is not surprising that a substantive reconsideration of the principles of modern economics is underway. …
“The British economist Fritz Schumacher understood that human institutions, as complex structures with dynamic governance, require systemic analysis. He defined meta-economics as the humanizing of economics by accounting for the imperative of a sustainable environment; thus, he included elements of moral philosophy, psychology, anthropology, and sociology that transcend the boundaries of profit maximization and individual rationality.
“Similarly, Eric Beinhocker, at the newly established Institute for New Economic Thinking, argues for ‘a new way of seeing and understanding the economic world.’ Such an approach requires incorporating psychology, anthropology, sociology, history, physics, biology, mathematics, computer science, and other disciplines that study complex adaptive systems.
“We believe that the framework of ‘micro-macro-meso-meta-economics’ – what we call ‘systemnomics’ – is a more complete way to analyze human economies, understood as complex living systems evolving within dynamically changing complex natural systems.”
My Comment: This is a move in the right direction. Really, it is not simple for economists to change their approach of “maximum profit at any cost” to some unaccountable values, such as connection, care, and love. They will have to develop a system of complete interconnectedness of humanity engaged in meeting its reasonable needs, from the point of view of the rational economy, the maximum output with the minimum cost and destruction of society and the environment.