Don Boudreaux of Cafe Hayek posted a link to this interview with economist and historian Deirdre McCloskey. This is my first exposure to her. I plan to read more of her work.
Some pluckings from the interview:
Shaffer: How do you evaluate economics today and economists’ function as modern America’s preeminent public intellectuals?
McCloskey: With alarm. But non-economist intellectuals need to understand some elementary economics: There is no such thing as a free lunch; national income equals national product equals national expenditure; free trade is nice; more money causes inflation; governments are not all-wise; spontaneous order is not chaos.
My alarm comes from the economist’s tendency to reduce humans to Maximum Utility machines. We need a humanomics, of the sort that Adam Smith and John Stuart Mill and John Maynard Keynes and Friedrich Hayek and Gunnar Myrdal and Kenneth Boulding and Albert Hirschman practiced. Some current practitioners are Nancy Folbre, Arjo Klamer, and Richard Bronk. It’s an economics for grownups.
Shaffer: Traditionally, bourgeois political life is defined in precise contrast to the ancient state, as one devoted to accommodating citizens’ desires rather than inculcating virtue in them. And yet, you suggest the virtues are the precondition for a bourgeois state.
McCloskey: Not exactly precondition, because I also argue that virtues are generated by a liberal economy and state (“liberal” in the old and still European and true sense, not the sense in which progressives have used the word in the U.S.A.). Markets make us more moral.