Economics for the Common Good: Between Science and Populism

🇵🇱 Polski
Economics for the Common Good: Between Science and Populism

Introduction

Modern economics is more than just mathematical models; it is the analytical core of social coordination. In the view of Jean Tirole and Elżbieta Mączyńska, it becomes a reconstructive discipline that, instead of imposing goals, analyzes the conditions conducive to mature decision-making. This article explains how economics for the common good can protect us from populism and technological challenges.

Jean Tirole: Economics in Service of the General Interest

According to Tirole, economics does not define life's goals but distinguishes effective means from ineffective ones. It is a science that identifies patterns, information asymmetries, and externalities. Economics for the common good requires moving away from technocratic dominance in favor of expert support for public debate.

Intuition vs. Facts: The Trap of Simplified Judgments

When solving economic problems, intuition often fails. These issues require thinking in terms of indirect effects and general equilibria, which often clashes with our spontaneous perception of the world. Understanding this difference is crucial for avoiding flawed political decisions.

Elżbieta Mączyńska: Quality of Life Over GDP Growth

Elżbieta Mączyńska emphasizes that the economy is not an end in itself, but a tool for improving the quality of life. Development must harmoniously combine the economic, social, and ecological spheres. Neglecting this balance makes the system vulnerable to shocks and populist resentment.

The Economist: A Mediator Between Science and Politics

The profession of an economist is a practice of mediation between the logic of scarcity, claims for justice, and subjective beliefs. Their role is to expose contradictory promises and point out real opportunity costs (trade-offs).

Institutions and Psychology: The New Pillars of Economics

The modern paradigm rests on three pillars: behavioral economics (studying cognitive biases), information economics (analyzing knowledge asymmetry), and institutional economics (examining the impact of norms and law on the effectiveness of incentives).

Populism Distorts the Structure of Social Information

Populism is not just about different goals; it is a systematic distortion of information. It exploits prejudices, focuses on easily identifiable victims, and ignores ironclad budgetary rules. The P, Q, and R metaphor exposes a logical contradiction: populist policy (P) gains support (R), but by definition, it cannot be economically justified (Q).

USA, Europe, and the Arab World: Three Economic Models

Economic knowledge is instrumentalized differently: in the Arab world, rentier logic and clientelism dominate; in the USA, polarization and corporate capture of tools prevail; and in Europe, there is a tension between technocracy and the social-democratic model.

Artificial Intelligence Redefines Expert Competencies

The AI revolution is shifting the expert's role from a data analyst to a guardian of responsible technology adoption. Algorithms affect productivity and inequality, which requires designing institutions that protect against information exclusion.

The Economy of Impermanence Forces Boardroom Agility

In the era of the economy of impermanence, corporate boards must manage systemic risks. Ignoring social and ecological costs is no longer just an ethical issue; it has become a hard financial risk threatening business legitimacy.

Political Phishing: The Technology of Hooking Voters

Populism operates like political phishing: it promises immediate transfers to a selected group while shifting costs onto anonymous taxpayers. In the Polish parliament, two forms dominate: redistributive populism (unfunded spending) and liberal-comfort populism (protecting privileges under the guise of the market).

Identity vs. Technocracy: Two Faces of Populism

Identity-based populism reduces the common good to national interest, rejecting facts (e.g., regarding the climate) as mere ideology. Conversely, technocracy, by managing over the heads of citizens, provokes democratic resistance, making it difficult to build a rational consensus.

Summary

Polarization makes building a market consensus impossible when the claim to truth is replaced by popularity. Ethics and crisis define the economist's new mission: building bridges between experts and citizens. In a world of algorithms, there are no technical tricks to avoid responsibility—the shape of the world for future generations depends on the quality of our choices today.

📄 Full analysis available in PDF

Frequently Asked Questions

How does economics for the common good differ from the traditional approach?
It focuses on people and the quality of life instead of just GDP growth, treating the economy as a tool for achieving social and ecological goals.
What is the main role of the modern economist according to Jean Tirole?
The economist is supposed to be a translator and mediator who explains market mechanisms and distinguishes effective measures from ineffective ones, without, however, making political decisions.
What is the danger of economic populism?
Populism simplifies complex problems, exploits cognitive biases, and ignores hard budget data, systematically distorting the information structure necessary for wise decisions.
How is artificial intelligence changing the profession of economist?
AI is taking over technical analytical tasks, forcing economists to act as guardians of responsible technology adoption and critical interpreters of algorithms.
Why is the fixed labor pool fallacy harmful to the migration debate?
Because it wrongly suggests that migrants take jobs away from local residents, when in fact they increase productive potential and stabilize public finances.
What characterizes the European economic model compared to the US?
The European model links the economy more closely with the welfare state and social dialogue, although it struggles with the tension between technocracy and democratic legitimacy.

Related Questions

Tags: Economics for the common good economic populism Jean Tirole Elizabeth Mączyńska sustainable development fixed work pool error information asymmetry external effects task automation social order interchangeable relationships general purpose technology distributive justice scarcity of resources market institutions