Geoscience Reference
In-Depth Information
Without delving further into this intriguing hot-button issue, our point
here is that due to the evolution of new institutions and their completely
predictable profit-maximizing behavior, the theory that once accurately
described a simpler and earlier world may no longer hold. Very few
“immutable principles” based on human behavior remain immutable
forever.
Our task, thus far, has been to identify different ways in which economic
theory or economic practice can lead societies astray and foster an unsus-
tainable system. We have uncovered, through these hypothetical examples,
different types of cases wherein undesirable effects on our world (local,
national, and international) can realistically be ascribed to economics per se,
or to economic behavior of one type or another. If the accuracy of the theory
is the problem, we may conclude that prescribed changes to economic doc-
trine are in order. If the problem is either a societal one or an incorrect inter-
pretation of the theory, the behavior of people and institutions must change.
The categories can be summarized as follows:
• Incorrect or counterproductive economic theory
• Incorrect or exaggerated use of the theory
• Due to economic evolution or institutional changes, an out-of-
date theory
• Underlying assumptions that cannot be granted
Most observed problems of an economically related nature probably
involve elements of more than one of the above categories. The underpin-
nings for the intellectual rationalization of the cause of a damaging action or
project can be based on bad behavior, poor or out-of-date theory, and false
assumptions—all at the same time. As we explore the innate nature of eco-
nomics and some of the ways it can mislead, we must be on alert for such fal-
lacies. But countervailing defenses will arise promptly, due to the perceived
threats to one's ego and the high monetary stakes. After all, as the theory
maintains, self-interest and self-preservation are powerful forces.
Growth as Economic Religion
Finally, as a result of all this, and in large part actually because of the flaws
in economic theory or in overly competitive or self-interested economic
behavior, the cultural and socioeconomic bottom line has become the insti-
tutionalization of the “growth ethic.” This becomes the norm, despite the
environmental impacts on the resource base; community land use, such as
 
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