Harmonious Economics or The New World Order. Vladimir Emelyanovich Chabanov

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СКАЧАТЬ economic theory presented in the monograph continues the traditions of the said economic school. It views economy as an integral and self-consistent system, as a structure built in accordance with harmonious principles that do not contradict the laws of the Universe, but are bound together by a strict and consistent logic. The purpose of such economy is attainment of material and spiritual well-being both of individual people and of the society in general.

      The theory of G. Leibniz was contradicted by the human society model proposed by J. Locke (1632—1704) ^[30]. According to the latter, the state should be built upon the principle of personal freedom. “No man is entitled to limit the other man’s life, health, freedom or property’37, established this theory. Locke presented property as an integral part of any economic process. Moreover, he believed that the human soul is a “tabula rasa’ later imprinted with experience, and that the behaviour of every person is conditioned by their personal benefit. According to Locke, social instincts were underdeveloped in humans, and moral was not employed in economic activities. Thus, John Locke can be considered the founder of ideology of classical liberalism.

      The essence of the theoretical foundations of this doctrine is the following: the liberals admit and even insist on the relations between personal freedom, private property, and the society’s economic prosperity. Besides, the individualism of this approach, which became one of the founding principles of the European civilisation, was not considered egotism and narcissism of people, but respect for the individual, and an absolute priority of every person’s right for self-realisation in this world.

      The implementation of liberal ideas in everyday economic processes is due to Adam Smith (1723—1790). In his work ^[31] Smith presented the concept of economic person driven by egotism and thirst for wealth. The author claimed that when a person acts solely in accordance with their own selfish interests, they do not only increase their capital, but also multiply their wealth. Based on this assumption, Adam Smith introduced the famous idea of the “invisible hand of the market’ that manages on its own all economic processes. He considered money as a source of wealth and as a technical tool that simplifies exchange of commodities.

      At the same time, none of the above-mentioned scientists have defined the limits of liberal doctrine application, that is why economics did not prevent the liberation of ones through restricting the freedom of others. On the contrary, it enabled certain individuals to make profit without bearing any responsibility. It did not oppose to living at the expense of others, whatever harm this way of life inflicted upon Nature and the society. Moreover, this doctrine infused western mentality economic system with the Darwinian struggle for existence, which justified any methods that assure personal success. Thus, the economic functions of production and distribution were separated from one another. As the result, the ideological basis of capitalism emerged.

      It is this vision that is still applied today to the entire global capitalist system. It is part of the foundation of all present-day economic theories. What is more, this particular vision is studied and implemented by the modern economic science and economy, it is thoroughly supported by the legal framework and legislation, as well as justified through the history of human development. As the result, liberal economy gets a moral excuse not to serve the society in general but to satisfy the interests of specific individuals. The economists have been led to believe that this type of organisation is the only one possible and they fight against the multiple drawbacks of liberal economy by liberal methods: they are enslaved by the rudimentary profit-generating economy just because they are unfamiliar with other possibilities.

      The logical consequence of this situation has been the desire to govern this amorphous human mass with the help of such universal tool as money. For this reason, all the current and previous reputed economic theories have to a certain extent been focused on financial instruments and the methods of making various types of profit. This is why “economics is mostly interested in the study of methods of setting monetary price for commodities and services sold at the market’38 (Ludwig von Mises ^[30]). As the result, economics has moved to serve business rather than the society in general, to care for income and profits, rather than general well-being. Furthermore, little attention is given to developing efficient labour factors.

      This narrow-mindedness of economics has made this science groundless and largely remote from the reality. The objectives of various social strata have drifted apart, which in itself is a sign of regression. For instance, the acquisition of foreign goods often produces additional income, however, it leads to repression of local manufacturers. Moreover, the very citizens of a country become out of demand within such economy. Hence additional profit is made by certain individuals at the expense of others. This is an objective controversy that needs to be resolved.

      Such economy actively employs the principle of differentiation of labour, and rarely – its cooperation. Competition has become dominant, and initiatives that unite people fail to be integrated in this system. Social responsibility of all enterprises has been forgotten. But on the other hand, all profit-generating activities, including criminal ones, have been justified. This is the main reason of the soaring crime rate, devouring corruption and ruinous permissiveness that all modern states are living through.

      Such situation can be easily explained. Indeed, the focus of any economy can lie either with its productive functions, that is, with human labour, or with the distributive functions, represented by money. It is evident that where efficient labour is encouraged, the well-being and the quality of life of the population grows. On the contrary, if the income of money owners is stimulated, if rent and profit are to increase, then the number of wealthy people grows, while the rest of the population goes poor and dies out.

      For a country to be successful, it should support production instead of consumption; it should create suitable conditions for those who generate real values instead of virtual ones. Economics should encourage fair work and condemn harmful activities as counterproductive. Then the moral and ethical environment will change dramatically, and order and benefit will replace chaos and evil at the rudder of the society. Economics should teach people to improve the productive and moral mechanisms that exist in a society; it should not act as a bad doctor who makes the best of his patients’ conditions. Economic science should make dishonest people fair, and not vice versa. “Among the ancients, we never come across an investigation into which form of landed property, etc., is the most productive, creates the greatest wealth… The enquiry is always about which form of property creates the best citizens’ (K. Marx)39.

      In the light of the foregoing, the capitalist model of economy only pushes the humanity further towards a dead end. It is suited for energetic, selfish and cruel people. Therefore, it primarily creates appropriate conditions for such individuals, while the rest of the society is seen as a nutrient medium for them.

      At the same time, if nature created humans different it was not for some of them parasitizing the others. In reality, different human qualities are required to reinforce the general human ability to survive, to adapt to any developmental scenario and to explore the world compared with the same abilities of a separate individual. For this reason, an economy focused on one type of people only is inevitably weaker, less vigorous and more defective.

      Karl Marx described economics as a science that studies “historically determined forms of production and exchange, as well as corresponding social relations’. Therefore, the USSR, where this understanding of economics was put into practice, defined this science as a branch of knowledge related to the study of the objective social development laws and to the formulation СКАЧАТЬ