Introduction
Modern economics balances between three poles: a classical belief in market self-regulation, the mathematical precision of models, and a critical tradition. This article analyzes how these currents—from Adam Smith to Joseph Stiglitz—attempt to explain the coordination of actions in complex societies. Readers will learn why equilibrium models fail in the face of information asymmetry and how technological development is forcing a redefinition of economic foundations. The goal is to integrate various theories into tools that serve not only efficiency but also social justice.
From Walrasian Mathematization to the Conflicts of Marx and Keynes
Léon Walras transformed the poetic metaphor of the "invisible hand" into a system of equations, where an abstract auctioneer seeks the intersection of supply and demand. John Nash expanded this vision into the arena of strategic interactions. However, he demonstrated that individual rationality often leads to an inefficient equilibrium, symbolized by the prisoner's dilemma. Conversely, Karl Marx defined equilibrium not as a static point, but as a historical trajectory of class conflict and cyclical crises of overproduction.
The debate over the role of the state was dominated by Keynes and Friedman. Milton Friedman and the monetarists saw the state merely as a guardian of monetary stability. John Keynes, however, argued that an economy could get stuck in stagnation due to the "animal spirits" of investors acting under conditions of uncertainty. This necessitates an active government role in sustaining aggregate demand.
Information Asymmetry, Human Capabilities, and New Geography
Joseph Stiglitz challenged the foundations of neoclassical orthodoxy, showing that information asymmetry paralyzes market efficiency. When one party knows more, the price mechanism fails. Amartya Sen enriched this analysis with an ethical dimension, proposing that development be measured by the expansion of human capabilities and freedom of choice, rather than just income growth. In this light, a formally correct Pareto optimum may be morally unacceptable.
Paul Krugman explained that economies of scale and transport costs inevitably create a divide between a wealthy core and the periphery. This model explains the differing trajectories of capitalism: Israel as a dynamic "start-up nation" built on technology, and France, embodying a dirigiste model with a strong state role and calls for taxing great wealth to reduce inequality.
Creative Destruction and the Challenges of the AI Era
Joseph Schumpeter introduced the concept of creative destruction, viewing innovation as the engine of growth cycles. Here, an aporia is revealed: Friedrich Hayek rightly defended the market as a system for aggregating dispersed knowledge, but Stiglitz demonstrated its vulnerability to financial sector pathologies. Today’s corporations must answer four questions: regarding growth in an era of deglobalization, the impact of AI on labor, the balance between profit and ethics, and the integration of the economy with ecology.
A logical puzzle exposes the illusion of the Pareto optimum: improving the lives of the poorest at a minimal cost to the wealthiest is a historical fact that does not necessarily destroy the system's dynamics. The upcoming artificial intelligence revolution is changing the ontology of market models, forcing a shift toward procedural reason. This involves making decisions in dialogue with the community, prioritizing trust over destructive individual strategies.
Summary: Toward Visible Accountability
Modern economics must move beyond the framework of cold calculation and reclaim its humanistic dimension. Integrating the business cycle with the ecological cycle and subjecting the market's "invisible hand" to visible procedures of accountability is key to avoiding the system's self-destruction. In a world of algorithms and Big Data, can we create a system where the market is guided by conscience? Without this shift, the next wave of creative destruction may simply become destruction.
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