Tuesday 18 July 2017

The Religion of Economics

The idea that Economics is turning into a religion is a question that has been thrown about loosely for a number of years now, in particular after the 2008 financial crisis. Take, for example, the UK; in which there are many established churches and religions that hundreds of thousands of people worship regularly. After reading an article produced by 'The Guardian', I found that people follow a more "powerful" religion, with that religion being Economics.

This comes as no surprise to me, as many people worship a variety of things, for example celebrities or materialistic goods. However, the ideology that Economics presents is so compelling that societies around the world conform to it's demand. Take China for example, one of the most prosperous economies in recent years, with a GDP growth rate of 6.9% as of 2015 (2nd highest globally). China is so invested in Economics and levels of GDP etc that they have 2 separate Stock Markets, one of them being a Stock Exchange devoted to a particular city - The Shanghai Composite. I think it's fair to say that the majority of countries around the world, if not all, prioritise their economy over anything else. This evident prioritisation can be seen on the News, in the papers, being discussed through politics and plastered across the internet. For these reasons it could be argued that Economics has converted the planet to it's creed, and bends it to it's will; however this could merely be a huge overstatement as it's down to personal opinion. 

Whether you believe that Economics is a religion or not, it's safe to say that has a major influence on every country and it's people. This begs the question as to whether Economics is all positive, and has no flaws, or whether it actually marginalises countries based on their wealth. The financial crisis of 2008 highlighted the weakness and instability of Economics, which could also challenge it's perception as a 'religion', as Nobel Laureate Robert Lucas claimed in 2003 that "the central problem of depression prevention had been solved" through the creation of Macroeconomics. This shows that Economics as a theory (or religion, depending on personal viewpoint) has it's weaknesses, and that it isn't an idealism in society today. However, despite the obvious risks associated with Economics via Stock Markets etc, it does in fact have it's positive aspects. People and Countries put their faith into Economics, which often brings about an array of benefits. For example, in the film industry, films such as 'The Big Short' (a personal favourite of mine) depict Economists predicting the 2008 financial crisis. This shows how people can put their faith in Economics; however it also shows how important Economics is in making sure a country can sustain itself.

To conclude, the argument that Economics is a religion as opposed to a science is hotly disputed; however it is undeniable that Economics shapes the world today, as it provides the foundation for each individual country. It is also necessary to realise that people talk about Economics everyday, they base their lives around it and some people have jobs in order to study and understand it. This highlights how one might consider it a religion. Overall Economics has both negative and positive aspects, as people can either suffer or flourish at it's hands; which again shows it's rule over society.

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