According to Alexander Auzan, Dean of the Faculty of Economics at Moscow State University, the role and activity of "institutional" economists increases during crises. Those. economists who look at the problem broadly. Then they are replaced by "mainstream" economists, who are good at considering and calculating narrow, point problems.
The task of “institutional” economists is to determine the general principles, vectors and trends that can lead to economic growth. Find a kind of “starting point”, a “fulcrum”, which, according to Archimedes, will allow you to “turn the world upside down”.
On the one hand, Adam Smith's The Wealth of Nations has long been taken as a reference point in economics. In modern science, this point has been transformed into GDP - Gross Domestic Product.
On the other hand, the starting point in monetarism (Milton Friedman) and the Austrian school of economics (Ludwig von Mises, Friedrich von Hayek) is freedom. Economic and political freedom.
The third fashionable reference point at the present time is the concept of the International Happiness Index.
Thus, there is no single point of reference now.
However, this point can be found if we analyze the basic principles of building a modern post-industrial democratic society. If you understand what the listed models have in common. Where is their common starting point?
The modern economic system, like the modern democratic system, was not created for itself. They are created for people. And that means not a person for the state, but the state for a person. Laws are not to restrict human freedoms, but to ensure respect for the rights and freedoms of every person, to increase the happiness and wealth of every person. It means that it is not the GDP that matters, but the wealth of each individual person.
States are made up of people. If there are no people, there is no state. Poor people mean a poor state.
Wealth, happiness, human freedoms are the area of respect for his rights.
Thus, the common unifying point in economic and political discourse and theory is in the area of human rights.
And if human rights are fully respected, then happiness arises, “wealth of nations”, the country's GDP grows, economic freedoms arise.
What are human rights? There is the Universal Declaration of Human Rights. It can be taken as a basis, although in my opinion, many provisions of this Declaration do not fully ensure human rights and freedoms. But it's still better than nothing.
You can also focus on the words of Thomas Jefferson from the US Declaration of Independence, that "that all people are created equal and endowed by their Creator with certain inalienable rights, which include life, liberty and the pursuit of happiness."
These words are much broader than the provisions of the Declaration of Human Rights and, in my opinion, more accurate.
If we take human rights as our starting point, the answers to many of the pressing questions of modern economics become obvious. And it will become clear in which direction to solve them, what should be the vector for resolving these issues, in full accordance with concern for GDP, economic freedoms, human happiness and the “wealth of nations.”
For example, the right to life implies the right to protection of life and health, as well as the right to death. This implies the need to legalize the sale of self-defense weapons, legalize euthanasia, simplify and even cancel the certification of drugs, medical institutions, recipes, etc. (See Milton Friedman's "Freedom to Choose" on the FDA). A person should have the right to independently and freely choose what, how and from whom to be treated. How to protect your life and health. Freely choose a healthy lifestyle or death from legal tobacco, razor, rope or alcohol, and illegal (in some countries) substances, guns, euthanasia.*
Another example. The right to work also implies the legalization of prostitution, which will also provide people of this profession with the right to life and health.* The same universal right to work, the right to freedom of movement requires the maximum easing of migration legislation.*
Are these rights and freedoms related to the wealth of peoples, GDP growth? Undoubtedly. The legalization of self-defense weapons, prostitution, immigration, the abolition of certification and licensing reduce budget costs for the police and other services, and therefore save taxpayers money. Reducing budget spending allows you to reduce taxes and thus make each taxpayer richer and happier.*
Legalization makes many businesses and incomes legitimate, which reduces criminal money and undermines the economic basis of crime. This means that it reduces budget costs.*
Moreover, legalization makes people law-abiding taxpayers, which increases GDP and budget revenues.*
As a result, people are rich and happy, GDP increases, budget revenues grow, turning into additional benefits for people, for example, in the form of unconditional income.
Thus, the starting point in a modern economy must be the parameter of full respect for human rights. It is the observance of human rights that underlies GDP growth and the “wealth of nations.”
With full respect for human rights, all economic actors benefit. Therefore, human rights are the main reference point for the modern economy.
* A detailed argumentation of the stated theses is given in the book "Economics and Human Rights"
The book can be downloaded for free , or .
In the FB2 and EPUB formats (for tablets, smartphones, e-books), the download occurs in the background, and the PDF will open in the same window (respectively, closing the Habr page).
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Addition.
I apologize to everyone who wrote a sensible comment, but I did not answer. The fact is that one of the users got into the habit of downvoting my comments. Every. As soon as it appears. This prevents me from gaining a “charge” and putting a plus in karma and for the answer to those who write an intelligent comment.
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Source: habr.com
