Managing the household
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The word "economics" originates from Greek word οἰκονόμος and roughly translates as “household management” and was a preoccupation of the ancient Greek philosophers such as Aristotle (Raworth, 2017). Economics as it is presented in this section is defined as
Economics
The study of systems where people interact to collectively manage resources for the provision of basic welfare and opportunity to pursue their individual ambitions.
The report critiques free market capitalism using the language and concepts from mainstream field of Economics. This primer on Economics Appendix is a brief overview of contemporary concepts in the capitalism economic framework. The overview starts at a high level concepts by introducing capitalism as a political economic framework along with common measures used throughout this report. The review then moves into models and concepts in macroeconomics which are used throughout the report and are relevant concerns for policy makers. In particular the insights from Economist John Maynard Keynes have direct relevance to the key claims of free market ideology on government size and the role of private vs public investments. One of his assertions was that in the short run aggregate demand (total investments) is responsible for employment and productivity growth and under certain conditions public spending can be at least as effective at achieving those ends as private investments. The insights of Keynes are as relevant today as they were when they were first introduced as a solution to the Great Depression of the 1930's.
Appendix : Economic primer
The Appendix "Free Market Ideology" moves beyond the basics to present a coherent description of a specific form of "free market" capitalism as a political economy with formal definitions captured in the "Economic Freedom Index" and the “Washington consensus”. The analysis describes it’s moral philosophy and terminology, theoretical assertions, and policy recommendations.
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