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Why Economics Cannot Be Separated From Politics

Posted: 01/18/2013 5:20 pm

With a nod to Ernesto.

The initial draft of this essay was spurred, in part, by reflections on the City of Toronto's deliberations regarding the 2013 budget. There will be more detail, more insight and more analysis than I can offer here, but there's one small oberservation that bears repeating, I think, and it concerns the nature of the budgeting process, and, by extension, governance itself. And it's something that goes beyond the municipal arena; the lesson here is, I think, applicable at any level.

One of the hallmarks of contemporary political discourse, or more accurately, the sewer into which the modern right has dragged it, is the characterization of undesirable things as "political," and the corollary implication that anything tainted by the stench of "politics" is undesirable.

When people seek to hold Rob Ford accountable for his misdeeds, they're engaging in a "political witch hunt." When the Ombudsman critiques the Ford administration for interfering with appointments, she's "politically motivated," or has a "political agenda."

It's an all-purpose insult, frequently deployed by the Denzils, DoFos and Mammos of the world. When you want to kneecap your opponents, all you need to do is bluster and accuse them of "politicizing" the issue. Nothing new here, really.

But it's time for some pushback.

What is budgeting, really, but a process of determining priorities and allocating resources in accordance with those determinations? We decide on priorities through debate that is, ideally, open, democratic, transparent, and, yes, often messy. We participate in public meetings. We elect people to represent us and look out for our interests. Both we and they balance various interests and try, ideally, to arrive at solutions that produce the greatest good for the greatest number. Inevitably, some interests are given greater priority and more resources than others.

It cannot be otherwise. That's what governance is. In prioritizing things and deciding how much to spend, we are invariably making value judgments. We are negotiating with others and making trade-offs. In other words, we are engaging in politics. There's nothing to be gained by deluding ourselves or trying to convince others that we are not.

And yes, as John McGrath points out, that illusion may be easier to sustain in contexts wherein most people think, substantially, the same way. It's easier to think, in situations like that, that you're just making administrative decisions. But as communities grow in size and complexity, the number of interests needing to be balanced also grows, as do the numbers you're dealing with. Before long, you're making decisions involving millions and billions of dollars that have profound and long-lasting effects on the shape of your city and the surrounding communities, not to mention the lives of millions of people.

It's either the height of naivete or revoltingly disingenuous to lament that it shouldn't be political. And it's even worse to suggest that because it's political, it's somehow icky or sordid or dishonourable. Either way, I don't want decisions left to people who think that way.

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HUFFPOST SUPER USER
Warren Yuill
Jesus Built My Hot-Rod
01:11 PM on 01/22/2013
Politics is money.
Money is politics.
06:54 AM on 01/21/2013
Once upon a time, there was no such thing as 'economics'. It was called 'political economy'. The emergence of the discipline called 'economics' was a product of a political class that made its fortune on laissez-faire liberalism and decided to pass their version of political economy off as an exact science. This is at about the same time that eugenics were considered a serious science (and, unsurprisingly, also made their appearance in the 'economics' textbooks of the time). 'Economics' became a matter of abstract mathematical models. So abstract that the notion of profit does not even exist in 'economics'. It had to be re-introduced in the 20th century. That's why, still today, 'economics' and 'business' are two different disciplines. The latter is about dealing with the real world of production, distribution, and consumption. The former is about using the discursive appeal of presumed scientific authority to science political opposition.
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HUFFPOST BLOGGER
Ryan Painter
08:01 PM on 01/18/2013
Brilliant article Sol and I couldn't agree with you more. Those who attempt through obfuscation or ignorance to attempt to split politics from economics are, in my view, attempting to do so as a way of elevating their stature in the minds of those they are trying to convince. The cannot be separated and should not be separated because everything is politics. Human engagement with the environment around us, in all it's forms, has a political dimension to it. Politics in and of itself isn't inherently bad. Yes, there is muckraking involved, but that's part of the way politics is done and this needs to be accepted.

After reading your post I was reminded of Churchill's famous dictum: "Many forms of Government have been tried and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time."
heterodoxlibertarian
small government liberal
10:13 PM on 01/18/2013
Politics can be seperated from economics. There are issues that virtually all economists are in agreement one. For example, the desirability of free trade or the lunatic nature of farm and corporate subsidies and the mortage interest deduction. The politicians who articulate different views on such questions are doing so because (a) they are economically ignorant beyond belief (b) they, and this is more likely, are pandering to special interests (manufacturers, farmers, big business and so on and so forth). Finally, economics tells us facts about the impact of policies in the real world, reporting the nature of trade offs. Determining how to deal with the implications of those trade offs is a question of politics.
06:54 AM on 01/21/2013
The claim that economics and politics can be separated is based on assertions such as yours, namely that "there are issues that virtually all economists are in agreement". This is demonstrably false. There is an illusion of agreement fostered by the very politicians (and they supporters, such as yourself) who wish to place their political views - in this case the primacy of a so-called free market - outside of political debate. They invoke a type of scientific managerialism, yet their science changes all the time. There was, for example, the Washington Consensus. It was anything but. There was much dissent from the get-go, but it was imperative to present the underlying economics as scientific fact, as consensus. But in less than a decade there was a post-Washington Consensus and now we even speak of a post-post-Washington Consensus. Was there ever a consensus on scientific economic fact or was it merely a temporary political arrangement among the powerful? The answer is obvious. Historically, different economic policies have worked in different places, the same policies failed when they were exported, or even failed where they once succeeded. It is very difficult to guess what will happen because economics is based on human behaviour, and human behaviour is politics.