economic paradigms

Discussion in 'Economics' started by morganist, Sep 16, 2009.

  1. the world is changing the needs of the economy is also changing. however are we stuck in our ways?

    is the real reason the banking institution and the economic system failing because people do not have the ability to move on to a new understanding of how things work or how they think things work.

    to achieve perspective on what is going wrong people have to first acknowledge it is going wrong and then assess what they can do about it. the assumptions they have had up until now are just that assumptions and not cast iron facts. when people move from one understanding of the world or a specific environment to another it is called a paradigm shift, they begin to question what is going wrong and draw new conclusions.

    can the world have a paradigm shift or is the financial system limited to the old way of thinking because of the limited view of the few in senior positions. people will not acknowledge that something is going wrong unless it affects them and the bankers and politicians are not affected by the current crisis at all. as soon as they could get back into the position they had before the credit crunch they took it and had little consideration for other people.

    will these people change? are they capable of changing? or a they limited by their own desires and what they view as their needs.
    freud spoke of peoples need to be important and this is also addressed by dewer who described the individuals desire to achieve greatness. while the few in power still receive benefits from their position and how they operate it fulfils this need for importance or greatness.

    these people will also try to receive the same feeling elsewhere through their intellectual ability and knowledge of how things work. one area people profess is financial and economic understanding as few people completely comprehend high levels of economic thought. therefore the few that do cling on to the fact that the paradigms set in the understanding they have of the subject is correct to maintain their reason for importance as they are among the few that understand.

    they are not capable of changing their understanding even if it is wrong until it is more beneficial to not. they will hold on to that paradigm to achieve greatness for as long as possible and may never change.

    can the people at the top who are not affected by the current conditions and also have a need to hold onto their understanding of how finance and economic work to meet their need to be important or achieve greatness actually be involved in a paradigm shift.

    unfortunately if they do it will probably be too late. if you look back at the events of the last two years you will notice politicians especially have not attempted to change things they have aimed to get things back to the way they were because it was in their benefit. they had the opportunity to change the banking system and to regulate the ticking time bomb of derivatives but they did not even now obama remains reluctant to do anything other than throw money at the economy and hope things go back to normal. he had the opportunity to teach wall street lessons they need to learn instead we are simply at the same position.
  2. so far as reported in the news, we had institutions too big to fail, now we have fewer and bigger institutions.

    And secondly, I am getting the impression that the transaction tax is going to be panacea for everything that went wrong which of course it isn't but that will not stop the politicians from saying this is what we did let's move on.