Economic Rationality (What is Political Economy?)

Economics used to be called political economy, and the loss of the ‘political’ tracks the ascendance of the idea of rational choice within the discipline. Where does this idea of economic rationality—choosing to maximize benefits and minimize costs—come from? What are the consequences of its rise? In this new book, Stephen Engelmann assesses these questions through a consideration of the often-hidden links between choice and government, ranging from the Benthamic utilitarianism that inspired modern economics to the contemporary economic psychologists trying to nudge everyone to choose more rationally. Multiple global crises are exposing how terribly deficient economic rationality is as a mode of government, since choice turns away from relations in the common out toward systems management and in toward better housekeeping. What once heralded a politics and ethics of egalitarian self-command and spurred democratic reform, he argues, now forecloses creative political-economic alternatives and legitimates otherwise illegitimate forms of rule. This accessible volume will be of interest to students and scholars of politics and economics, and to general readers concerned about the various ways that psychology and management have infiltrated our politics.