Wealth and Profit

Abstract

Modern economics has evolved to such a high complexity that even the professional economist can only be familiar with some special subfields of his subject. Specification and severe professional competition tend to result not only in technical complexity and accuracy but also narrowness (if not mediocrity). The evolution of professional economics shows that the division of labour and market mechanisms may not be effective in some circumstances with regard to some human activities. Modern economics is characterized by the refinement of each subfield without the existence of any strong connections among these subfields. In contrast to pure mathematicians and natural scientists, economists deal with values and the exchange values of real things (and human affairs). J. S. Mill’s saying that a person who knows nothing else is not likely to be a good political economist is still applicable to the profession. In contrast to Adam Smith, the father of economics, modern economics (at least its main contents) does not explicitly refer to a moral dimension. The economy is treated as an autonomous system, independent of, for instance, ethical systems and social systems (like family structure).

To found a great empire for the sole purpose of raising up a people of customers, may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose Government is influenced by shopkeepers.

Adam Smith (1776II:129)