The model of the person in economics is the so-called homo oeconomicus who perfectly surveys the market, clearly foresees the future development and then rationally decides upon an action, optimally adjusted to all relevant data, that creates the greatest economic advantages for him. This homo oeconomicus is also the basic figure of all marginal theories like the marginal benefit- and marginal cost schools. However the marginal figure is a chimera. Neither this know-it-all or this predict-it-all person exists nor a person who makes purely rational economic decisions.
The homo oeconomicus cannot be our hope and is not desirable or future-friendly. The economic benefits for the capitalist entrepreneur are in contradiction to nature and to the person…
We face completely over-sized financial markets today that have uncoupled from the real economy creating value. In 2010 the volume of financial transactions amounted to 75-times world production. When financial businesses offer profits of 10 to 30% while the economy only grows 1 to 3% per year, an ever larger part of wealth is sucked up in the largely unproductive financial sector. This economy liquidates itself. Therefore Hickel and others urge the rigorous regulation of the financial sector and many support the conversion in to public, democratically-managed property. Only a democratic financial management can ensure more democratic control of the economy.
to read the articles by Conrad Schuhler and Rudolf Hickel published in September and November 2014, click on