Modern Economics as Ancient Catholicism

I was thinking recently about economics and its place in the modern world. It strikes me that it now occupies a quasi, if not full blown religious status. The ascent of economics to the place of one of the defining elements in our lives is an interesting one, made even more interesting by the fact that the majority of people are ignorant about even the basics of economic history and theory. This is my link to ancient Catholicism.

The Church was able to control people much more easily because the Bibles of the time were written in Latin, and only the clergy and other societal elites were able to read it. This cut off the masses from actual contact with their holy book, and their only path to understanding was to have it interpreted for them by the clergy. We face a very similar situation today with regard to economics. There is a great deal of literature out there, but few people have the capacity (or at least the desire) to understand it. Instead they go through life listening to politicians and talking heads interpret it for them. This concentrates a GREAT deal of power in the hands of those who are interpreting. You must accept their word as truth because you have no capacity to test it.

This leads to a great deal of danger. If no one is questioning those interpreting the text, then their power is almost absolute. Much as the church used their power over scripture to maintain power and enrich themselves, it seems like those with a mastery of economics are doing the same today. Bankers and traders get rich, control governments, and use public funds to bail themselves out if things go wrong. If we don’t listen to their advice, we are doomed to economic hell. We pay astronomical fees for them to look after our earthy future, much as people paid great sums to the church to look after their eternal souls.

Luther and others eventually broke the Church’s monopoly over the scripture, and subsequently the power of the Church has eroded. People think more for themselves, and societies were able to explore avenues of research and philosophy which had been closed to them by the Church. European society was reborn and we are still reaping the benefits of that renaissance today.

What I’m suggesting is that we need a new renaissance in economics. People need to get out there and educate themselves for the benefit of everyone. The more they understand, the less those in positions of power will be able to deceive them, and reap massive rewards for themselves while keeping the rest of the populace in ignorance. We need a modern Luther who will be able to open people’s eyes to the need to think for themselves, and create a new church of economics free from the control of those who have a great stake in the current order.

I would suggest Paul Krugman, Dani Rodrik, and Joe Stiglitz as potential modern Luthers but I’m sure there are more. But above all else, people need to liberate themselves. Even a basic understanding of macroeconomics will enable people to test the truthfulness of statements and analysis far better than they are capable of doing without. If economic growth is the benchmark against which we judge governments, citizens need to have a much better understanding of economics to render proper judgement.