Some of the aspects of the movement in ‘new economics’ highlighted by Sumita Kale sound quite promising. For instance, it is true that “many issues of economic policy (traditionally called ‘welfare economics’) are primarily ethical-economics in nature, and should be informed by moral philosophy rather than economics in isolation.” The growing conversation between economics and other disciplines, specifically moral philosophy and theology, is most welcome.
Indeed, some of the principles animating the work of the Cambridge Trust for New Thinking in Economics sound similar notes: “economic behaviour is influenced by aesthetic and ethical values as well as economic values.”
But when we drill down to the objectives of the Trust and look at some of the other principles, it becomes clearer that what is “new” about “new economics” is that economic research is pursued with an overtly and explicitly socio-political agenda: “It is vital that two social problems be solved. The first is the obvious degradation of the planet and its atmosphere by over-consumption and over-production through the exploitation of resources in pursuit of monetary gain. The second problem is the toxic pollution of the global money supply, also obvious, caused by financial practices over the past twenty years, led by the investment banks of Wall Street and the City of London.”
What we have here is economics as social engineering, providing norms for behavior rather than describing it. “New” economics (traditional economics with just a dash of moral philosophy thrown in) becomes a prescriptive rather than a descriptive discipline, and therefore simply one more voice among many clamoring for dominance in the legislative process.