Western Modern Economics Must Be Thoroughly Deconstructed -- Economics Is Essentially Nothing But Political Science Plus Psychology (2004-9-14)

In an age overrun by sea turtles and lapdogs, Western modern economics is treated as theology. Theology is not to be discussed, much less deconstructed. Mythology does not exist -- even mathematics cannot serve as theology. Yet Western modern economics, which merely borrowed some axiomatic thinking from mathematics to swindle people, has been elevated to the status of theology. This in itself constitutes a new myth of China at the turn of the century.

Those who enjoy preaching are really only of two kinds: those who are truly intoxicated, which is a psychological matter; and those who are truly clear-headed, which is a matter of interest. When it comes to interest, people are never stupid -- and interest is politics. Economics is the same: economics is political science at the level of interest, and psychology at the level of operation.

At the level of interest, economics has always been political science. For any specific economic phenomenon, there is certainly more than one theoretical solution. But which one to choose is a political question. And the choice is what is most fundamental -- until that final decision is made, everything else is just noise. For example, regarding the current so-called inflation problem, there are many theoretical approaches. Which one to select is ultimately determined by political stance. So-called political stance, at its root, is a matter of the game between different interests. The political and interest-based motivations behind different methods are absolutely different.

As for concrete operations, the effects of economic policy are transmitted more at the psychological level -- this involves questions of psychology. Economic phenomena are fundamentally the materialized process of psychological images. This can be clearly seen from market trading charts.

Intentionally or unintentionally ignoring the above two points amounts to playing word games or number games. Swindling money in the study or at a private gathering is fine, but if the country relies on such people, it is truly in peril!