Economic Pathos

Abstract:

Pathology is inescapable in analysis; due to the relationship between positive and negative utility. Where one intends to promote the most favorable results practical, some deprecation of outdated or even malicious developments is necessary. Having an negative view of unfavorable developments is not negativity in and of itself; any more than having a negative view of mistreatment of people is negativity... and too often the two correlate. Economic Theory revolves around economy; and that entails both efficiency and equilibrium. Where those two aspects of economy are not met, economic instability and thus human suffering result. It appears that Economic Theory cannot escape Philosophy either.

Survival of the Fittest:

Monopoly, due to it being a hindrance to contingency, is a serous risk factor. A market of one business is a market at risk; because the loss of that particular business would result in the loss of the entire market. That is what many risk managers refer to as a 'singular point of failure'. That lack of competition also removes natural incentives to innovate; by having no need to compete with innovation. Natural incentives to behave in a generally favorable manner would also be non existent without the competition that promotes that as well. The consumer base thus is being held over a barrel by one particular supplier who merely gives them what they get. Just like one animal does not make an ecosystem, one business does not make market. Monopoly has similar risks to Monoculture. Survival of the fittest appears to be an elitist, old world view that Darwin himself found to be incorrect in his latter years. He found ecosystems to be much more cooperative than competitive. This is something that Adam Smith argued about economies in "The Wealth of Nations" about a century before. Survival of the Fittest appealed to those who justified their entitlement with notions of being intrinsically more fit, from a Machiavellian perspective. Centuries of study on the other hand, have demonstrated that Machiavellian behaviors lead to crisis; and Machiavellian leaders 'ruling over the ashes'.

Economic Tweaking:

During the Great Depression, suffering was entirely too common. Hunger, homelessness and poor physical and mental health were felt by millions across the US. This is the obvious wage of economic crisis and the risk of poor management. It doesn't just affect the more vulnerable citizens either. There were numerous cases of wealthy investors jumping from buildings because they had lost everything. Economic Depression negatively affects everyone. When an economic system collapses, everyone's quality of life becomes poorer. No one benefits from it; and everyone suffers from it. That's a rare form of consensus. Everyone finds it to be unfavorable. So, why is there not more support for risk management? It appears that education on the importance of risk management is lacking. There seems to be a degree of hubris in economic and financial understanding. Keynes suggested that an economy could be micromanaged through tweaking toward favorable outcomes. Our current trajectory toward economic collapse appears to be evidence to the contrary. Economies are complex, self-organizing systems. Authoritarianism and Credentialism currently rule economic policy. There is no explanation for the current tweaks or how they work. It's just trust and confidence; with no reason what so ever... as the economy sinks into Depression.

Pathology:

The suffering that has happened over the past several decades, as the markets have slowly become generally saturated, and the consumer has become a servant to them, has not been an incentive to manage the risk we all face now. This is explained, with William of Occham's blessing by economic ignorance and incompetence. People were told by leaders that everything will be alright under their administration... and people believed them. People were told that the stock market was unstable due to the elections... and that blame will shift soon. The fact is, those who set policy don't understand economics. They make political decisions with unfavorable economic consequences and blame someone else. As expressed in the "Survival of the Fittest" section; this is not a cooperative behavior pattern, and thus it's pathological... for everyone. We are on the brink of Economic Depression and there is still a consensus that it can be turned around. General ignorance is the only thing that explains it; and general education is the only thing that can change it.