Our goal is to change the teaching of economics in ways that will help all human beings on this planet lead richer and fuller lives, and enable them to realize the potential for excellence possessed by all humans. We would like to eliminate hunger, poverty, economic oppression and injustice, and move towards greater equality in standards of living. We would like all children to have equal opportunities for education, and access to health care.
Is it possible to do this by changing the way we teach economics? there are many fundamental problems with the conventional economic theories like;
- Normative Positive Distinction: Although conventional economics claim that it is positive but infact almost all fundamental economics concept are normative in nature.
- Use of Scientific Methodologies: Conventional economic teachings believe that economics is social science only base on scientific methodologies. What this means is that we should look for universal economic laws which are invariant across time and space. What kind of economic laws can we find that apply equally in modern Australia, ancient Maya, colonial India, and nineteeth century Britain? In fact there are none. Nonetheless, the methodology prevent economists from studying history, which is the key to understanding economics.
- Conventional economics is based on free markets. the proponents of free market argued that market self regulate to optimal outcomes. there is no need of intervention, free markets always result in best possible outcome. however it has now been realized that invisible hand philosophy does not hold in real world.
More Recently global financial crisis of 2007-8 showed up the defects of conventional economics. One of the central claims of economic textbooks is that market prices decentralize production decisions efficiently. Since stock prices declined by 50% over the period of an year, it is immediately obvious that pre and post crash could not both have been efficient.
In order to create room for alternative pedagogical approaches, it is necessary the challenge the blind faith in conventional economic theory that seems to be widespread both among economists and also among the general public. Hence the main objective of Pakistan Chapter is to challenge the blind faith in conventional economic theories and also do effort for alternatives.