Learning Objectives
By the end of this section, you will be able to:
- Discuss the orthodox definition of economics.
- Understand the organization of the orthodox definition of economics.
- Describe the paradigmatic direction of orthodox economics.
Sometimes, in order to better understand how something works it is useful to break apart, or deconstruct (de-engineer), the object of examination. During periods of war, oppositional armies are known to commandeer their opponent’s weaponry in order to de-engineer, or deconstruct, the equipment. The United States Army Air Forces Operation LUSTY (Luftwaffe Secret Technology) sought to capture German technology both during and after World War Two. By taking apart a piece of equipment piece by piece the examiner gains insight into both how the equipment operates as well as its weaknesses. In times of war, stealing good ideas and developing better ways to destroy an opponent’s weapons can be invaluable. The object of deconstruction does not have to be physical or mechanical for the process to be useful; deconstructing an idea is also a valuable process for enriching understanding. Regarding the orthodox definition of economics, as it is the object of both examination and critique, this same type of deconstruction will also be useful.
In the first chapter of this text an example of the orthodox definition of economics was provided to the reader. The definition provided, similar to variations on the orthodox definition of economics in most textbooks, owes its origins to a famous early 20th century economist, Lionel Robbins. Robbins famously defined economics as, “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” Contemporary orthodox economic textbooks tend to utilize a generic variation on Robbins’ definition, often stipulating something akin to “Economics is the study of the allocation of limited resources over unlimited wants.” In order to examine the appropriateness, or lack thereof, of the orthodox definition of economics, a closer examination of the definition is necessary.
One approach toward deconstructing the orthodox definition of economics is to define, specifically within the context of the orthodox economic meaning of the words, the other terms within the definition. Given the organization of the orthodox definition, with wants being conditioned by the availability of resources, one possible starting point for deconstruction is the orthodox definition of the term resources.
As should be noted from chapter two of this text, the orthodox economic definition of resources emphasizes that resources are those things that are needed for production. While other resources may be relevant, orthodox economics nearly exclusively focuses on Land, Labor, and Capital as the essential resources necessary for production. When more resources are present, more production is possible and when fewer resources are present, less production is possibl