‘There is no alternative’ is a phrase, so often uttered in modern UK political and economic rhetoric, that it is generally viewed as a slogan. It is intended to defend neoliberalism, globalisation, monetarism and free markets and, literally, dismiss all other contending perspectives.
This slogan was first used by Margaret Thatcher in the 1980’s as she promoted her agenda and world-changing economic policies. However, the phrase, in this context, has been reiterated by many Conservative-minded commentators and politicians over the years, most notably, UK Prime Minister, David Cameron, in defence of the austerity agenda, his government imposed, in the aftermath of the Great Financial Crisis in 2007/8.
It is indicative of the high regard the general public has for economics as a discipline, and the low confidence people have in their ability to understand the subject. Current economic thinking is very difficult for the layman to understand due to the fact that layers of complexity and needless complication appear to be inherent characteristics in the dominant neo-classical school. It doesn’t make sense to the lay-man, however, it doesn’t make sense to the academic either.
Jeremy Rudd, a researcher, wrote a paper for the Federal Reserve website on market expectations forecasting. It is scathing in its critique of modern economic thinking. In his Introduction, he states that:
“Mainstream economics is replete with ideas that “everyone knows” to be true, but that are actually arrant nonsense.”
After giving a number of examples, he goes on to say:
“None of these propositions has any sort of empirical foundation; moreover, each one turns out to be seriously deficient on theoretical grounds.
No doubt, one reason why this situation arises is because the economy is a complicated system that is inherently difficult to understand, so propositions like these—even though wrong—are all that saves us from intellectual nihilism.”
Heterodox Economics
Many economists are in agreement with Rudd. They are from a number of economic schools grouped under the banner of heterodox economics. This basically means they don’t conform to the orthodoxy, currently described as neo-Keynsian or neo-classical.
For there to be a heterodox school at all, there obviously must be an alternative. This is just as well, as current orthodox economics work for many but leaves far too many, too far behind. Conveniently for the proponents of the status quo in the Scottish Independence debate, mainstream economic policy would make it very difficult to create a prosperous Scottish nation in the short term. So, thankfully, Thatcher and Cameron were misinformed.
There are dozens of these alternatives. Despite this huge divergence of thought and insight, there are multiple overlaps where agreement resides, but all the schools have something different to offer economics as a whole. For them not to be considered openly is indicative that an influential section of society is closing down the debate.
There are institutional economists, feminist economists, ecological economists, Marxists, Austrian economists, post-Keynsians, Darwinian economists and many more all schools with alternatives. Differing perspectives create a model of society as viewed from all angles and constructed on wider knowledge. The current economic environment, dominated by neo-classical thinking, is based on underpinning a neoliberal ideology. The only way this is possible is through the deception framed as, there is no alternative.
No One Economic School has all the Answers
No one economic school has all the answers, they each have different ways of attacking the questions society poses. Diverse perspectives will often interpret the questions differently due to the varying priority concerns of the schools. A cooperative effort in problem solving can spot a wider variety of obstacles and solutions, ensuring a resilient and optimal future path, and acts as a maximal check on unintended consequences.
Without alternatives, there is no vehicle for evolution of thought. Without the creation of new ideas, with nature changing all around us, the only outcome is stagnation and death. Humanity must keep evolving to adapt to this changing environment and so, must cover all the possible bases. This requires bringing everyone into the tent, interrogating all the alternatives.
Economics has thousands of years of practical knowledge to learn from. There seems to have been a constant direction of travel until the 1970’s. At that point the economic discipline appears to have left the mainline. The points were thrown and the economic train diverted onto a dead-end track with a bridge unfinished over a ravine. We need to recognise the impending danger, apply the brakes, find reverse and get economics back on track.
I’ll leave the final word to Jeremy Rudd who in a footnote to the introduction of his paper says:
“I leave aside the deeper concern that the primary role of mainstream economics in our society is to provide an apologetics for a criminally oppressive, unsustainable, and unjust social order.
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Well said David. The whole propaganda campaign of ‘TINA There is No Alternative’ was always a flat out lie. If people want to hear some sensible alternatives, look up retired emeritus professor Michael Hudson and Professor Steve Keen
Well said David.
The whole propaganda campaign of ‘TINA There is No Alternative’ was always a flat out lie.
If people want to hear some sensible alternatives, look up retired emeritus professor Michael Hudson and Professor Steve Keen