Economics for (and by) humans

Abstract

ABSTRACT This essay discusses the nature of, and challenges for, social economics. It begins by exploring how social economics differs from mainstream economics in its goals, definition, and models, and briefly examines the roots of Neoclassical orthodoxy. It then argues that social economists need to take more seriously the human and social nature of our created knowledge. An example from the empirical study of gender and risk preferences illustrates the effects of personal and cultural factors. The essay also argues that social economists have not yet sufficiently challenged the orthodox economics view of the economy as an ethics-free sphere. This view has contributed to increased inequality and a failure to act decisively in response to climate change. A better understanding of where orthodox economics models and methods come from opens up new ways of understanding our search for knowledge and emphasizes the importance of ethics in economic life.