A Kuhnian Paradigm Shift in Economics Is Overdue

China Social Science Review

No.2, 2021

A Kuhnian Paradigm Shift in Economics Is Overdue

(Abstract)

John Komlos

Mainstream economic theory is stuck in the 19th century conception of human beings and their interaction in markets. Homo oeconomicus as a theoretical construct is essentially pre-Freudian and pre-Pavlovian. Economists need to shed their anachronistic canon in order to become relevant for the 21st century. Hence, students must be introduced to the workings of real-existing markets from the very beginning of their studies in order to understand the Achilles heels of real markets and the formidable challenges that lie ahead. However, this requires a Kuhnian paradigm shift away from orthodox dogma and toward a discipline that starts with behavioral economics and incorporates such concepts asymmetric information, relative incomes, basic needs, the need for countervailing power to offset the power of mega-corporations, the threats of hyper-globalization, and recognizes the dangers of continual pollution and degradation of the earth’s natural resources in order to achieve a just society that also considers the needs of generations yet unborn.