07 November 2010

Subjective and objective but not projective

Economics deals with the subjective and the objective but not with the projective. The neo-classical model takes into consideration the subjective preference orderings of the agents; the objective takes into consideration the initial endowments of the goods. The projective however embodies the technologies and the management systems, and to that the model simply cannot speak. 
It's not a question of monistic vs dualistic understandings of the social order, it's not how the material and the spiritual interact (as the authors say in Ecological Economics, Herman E. Daly and Joshua Farley, 2004; page 50), it's about the projective. 
Anyone running a project needs to solve the problem of the interaction of the spiritual and the material in the very execution of the project. The model doesn't need to invent the interaction, it needs merely to reflect what is really going on in the world, all the time, as a day-to-day matter. It's not a big mystery. 

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