1. Economics as ideology Teppo Eskelinen

2. Economics as ideology Ideological: can leave some aspects of reality untold, can highlight only one party's viewpoint etc. Of course, all theories do this to some extent Theories affect how we construct social reality and also our normative perceptions of reality, along with our perception of possible. No economy without economics 3. Observations vs rules Economics is not, as presented, merely about perceptions, but rules Claim to objectivity, accuracy Some of these rules are descriptive: markets aim at equilibrium Some are normative: debts have to be repaid Self-sufficiency of economics (without the underlying morality, the system would collapse because of its control expenses) 4. Complaints on economics Economics describe the viewpoint of the bourgeoisie as thus reproduce class society (two economies) Economics as producing the economic man Economics as the anti-democratic sphere of society (politics in disguise) 5. Economic social ontology The story of the market: adult males appear from nowhere. Market preferences are technically pre-communication wants Related to "social contract" methodology The barter story Then, a) marginal changes can be analysed b) political choices can be analysed as deviations from the market norm 6. Market intervention After this description, the market ontology describes political reality as free exchange / intervention Curiously, historically there never was a market in the abstract sense to be distorted, but markets have to be created Push for "the free market" rather appears as a political intervention 7. Free-market reforms Restructuring of the public sector New government orientation New boundary-setting for economics&democracy Disciplining democratic spheres by debt discipline ->Reconfiguration of the political space as any "market entity", buying, selling and financing itself within a competitive market; negation of "the political" 8. Market characteristics Efficiency (externalities & profit) Freedom Rational human beings Perfect information 9. Market: abstract and concrete Price signals, visibility Power, institutional capabilities Terms of entrance and exit The no-location of market: everywhere and nowhere 10. Birth of neoclassical economics Efficiency Optimality Interpersonal utility comparisons Conception of well-being 11. Economics and democracy Different co-ordination mechanisms Democratic vs economic Spheres are open to negotiation Equality, reflection, readily existing preferences 12. Spheres of markets Goods, services, risks... ->No natural market, but a constant extension of what is considered market sphere ->Already labour & land needed to be commodified How are different things discussed as economic? For example risks and the protection fro risks. 13. The essence of market economy The market economy is not born from changes in the market, but changes in the ownership structure (its every success & backlash...) and the money/debt relation Most trade today takes place within multinational corporations. Thus, they are merely accounting Most money today never takes physical form. Thus, money is mostly different organisations accounting. Money: helicopter drop vs power relation 14. ..continued Control of time A financing system, not a production system (does not therefore relate to the market) Success based on working against the market (industrial policy vs raw materials, demand policy...), most large firms (bureaucracies) work on non-competitive markets Most profitable activity is rent-seeking