Economic Rationality

The loss of the "political" in economics has led to the rise of rational choice theory, which focuses on maximizing benefits and minimizing costs. Stephen Engelmann's book explores the links between choice and government, from Benthamic utilitarianism to contemporary economic psychologists, and highlights the deficiencies of economic rationality as a political theory. It will be of interest to students and scholars of politics and economics, as well as general readers concerned about the influence of psychology and management in politics.

Format: Paperback / softback
Length: 140 pages
Publication date: 30 September 2022
Publisher: Polity Press

Economics, once known as political economy, has witnessed a significant shift towards the notion of rational choice within its realm. This shift can be traced to the decline of the "political" aspect, indicating the growing influence of rational decision-making within the discipline. The concept of economic rationality, which revolves around maximizing benefits and minimizing costs, has emerged as a central theme in economics. However, the origins and consequences of this rise warrant further exploration.

In his insightful book, Stephen Engelmann delves into these critical inquiries by examining the intricate connections between choice and government. His exploration spans from the Benthamic utilitarianism that laid the foundation of modern economics to contemporary economic psychologists who strive to promote rational choices among individuals. The author highlights how global crises, such as the recent financial crisis, have exposed the limitations of economic rationality as a political theory. A predominant focus on choice tends to divert attention away from interdependencies and relations within the common, hindering the development of a more inclusive and democratic political landscape.

Political economy, in its earlier incarnation, aimed to challenge aristocratic rule and advocate for a politics and ethics of egalitarian self-command. It sparked democratic reforms and aimed to empower individuals and promote social justice. However, the advent of economics has facilitated the dominance of certain groups and limited the possibilities for alternative systems. This book, written in a accessible style, appeals to students and scholars of politics and economics, as well as to general readers who are concerned about the pervasive influence of psychology and management in shaping our political landscape.

In conclusion, the evolution of economics from political economy to a rational choice-driven discipline has had profound implications for our understanding of economic behavior and political outcomes. By exploring the origins and consequences of economic rationality, this book offers valuable insights into the complex interplay between choice, government, and the broader social and political context. It serves as a reminder of the need to balance individualism with collective interests and to strive for a more inclusive and democratic economic and political system.

Weight: 204g
Dimension: 139 x 216 x 14 (mm)
ISBN-13: 9781509538119