The same is just as true of capitalism. We very obviously do not live in a capitalist economy. Capitalism requires that there be an efficient mechanism for the distribution of capital through a market system that is free from the tendency to monopoly to ensure its efficient allocation for the benefit of all.
Well, no, not really. Might be nice if we have it but there’s nothing which says it is required now, is there?
Second, neoliberalism works by describing a distorted view of reality with a very specific goal implicit in it, which has been the delivery of bias towards a few.
So we need a new narrative. It must reflect the reality that the economy is mixed. There is a role for the private sector, and for the state. The reality is that each does some things well, and is sometimes deeply unsuited to tasks that the other is best able to deliver.
Why a new narrative? For that’s exactly what neoliberalism itself says, isn’t it?
So what is this economics called? I’d call it realism, because it is based on reality.
The reality of the economy that exists.
The reality of the way it works.
The reality of what people know is wrong with the narrative we have.
The reality of the aspirations of most people.
The reality of the constraints we face.
And the reality of the opportunity we have.
We’ve had capitalism, socialism and neoliberalism.
Now I want realism.
Could this be the new ‘ism’?
Is that too much to ask?
Well, coming from someone who regularly refuses to recognise reality, yes, this might be too much to ask.