Before discussing why the collapse of the economic model might be actually positive, an important remark is necessary: economics is not a natural science and therefore no part of its theoretical framework is valid by itself. Unlike physics for example, where the existence of force of gravity is undeniable fact (because everybody experiences its effects), economic “laws” are valid only as much as we agree to them and act as if those are real.
Let us take the example of money. Money in its conventional form has no useful value by itself. A banknote or a current account cannot satisfy directly any real need – you cannot eat the numbers in your bank account, you cannot use a banknote as clothes or shelter. In real terms a bank account is a sequence of numbers in a computer and a banknote is a piece of paper with a printed amount. What makes money valuable and useful is our consensual agreement to regard them as means of exchange of the things that directly satisfy our needs.
The previous paragraph is to illustrate that the economic theory and therefore the model for which it serves as a basis, are artificial rather than objective constructs. The theory is on one hand a description of certain forms of interactions between individuals and nations in particular time of human history. At the same time, it has eventually managed to promote those forms of interaction to a level where they came to be accepted as self-existing, self-evident even inherent to the very human nature. People started believing in it as undeniable objective reality and this way have allowed it to shape their mindsets.
Tricked into acceptance
By accepting the framework of contemporary economics as a natural law, we are the ones who actually make it manifest as such law. By believing that economic interactions follow certain logic which is beyond our control and thus we can only abide by it, we effectively decide for ourselves that there is no alternative. As far as we perceive it as being the only possibility, we are bound to behave in a way that can only solidify the model and make it look more like being the natural and inescapable order.
To recap – economic theory has convinced us that it is the only valid alternative and by doing so effectively became such alternative. Now, whether this is coincidence or result of intentional design is another topic. The ultimate fact is that we seem to be only subjects and victims of the model where we actually are the ones who perpetuate it and sustain it. This is the vicious circle we are in – we are the ones who suffer the defects of the model and at the same time the ones who help re-create it constantly. This is the very first thing which people should realize. Only when we understand that, we can consider alternative approaches.
