Tag Archives: economic policy

The New Scientist on Economics

Economy Boat
Economy Ahoy (Photo by Kerstin)

Last year a strange bit of ‘neoliberal’ propaganda surfaced in the New Scientist of all places. In what purported to be a report of recent research, Washington University psychologist Pascal Boyer has written of how the ‘human mind is designed to misunderstand the mass-market economies we have created’.

He says ‘evidence from psychology and anthropology…reveals that people have an intuitive mental template for how exchange…should occur’, and that these are evolutionary in origin. This template has arisen because, Boyer argues,

humans evolved to be highly co-operative…[a]nd our ancestors shared resources, especially when it came to goods with highly variable availability… Trade mostly took place between people who knew each other, or between groups that shared repeated exchanges. Technology was simple enough that they could track how much effort was involved in making most things, and verbal communication…was used to select the most co-operative partners with whom to do business. As a consequence, ‘we have a strong sense of fairness, and intuitively expect and prefer that the proceeds of a joint effort be shared in proportion to each participant’s contribution’. Moreover ‘we intuitively consider it beneficial to extend small favours to trading partners rather than exploiting their weak positions, because of expectations of long-term interactions.

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