Charles Clark probably doesn’t win a lot of friends in his chosen profession when he says that most economists don’t really understand the economy. But even though he earns a living teaching economics at St. John’s University in New York, Clark believes that understanding how the economy really works requires more than just a classroom education.
“I’ve probably learned more about economics working in factories than I did from my Ph.D. program,” says Clark. Working on an assembly line in a motor oil canning factory for $2.35 an hour, he saw how racial and ethnic minorities are treated differently in the workplace. A job at a wire striping factory helped to illustrate Adam Smith’s theory on the division of labor. And earning $9.10 an hour to wash pots at a nursing home helped Clark appreciate the power of unions.
In the real world Clark found that ideologies proposed by economists fail to hold up. “This is really the big problem with my profession,” he says. “We look at markets as if they’re like the ones we teach in textbooks and they’re all the same. But they’re not. Every market has to be established with a set of rules.”
Too often, Clark argues, those rules favor the rich at the expense of the poor. But applying Catholic social teaching to real world economics may just offer a solution that benefits everyone. Hopefully his students are taking good notes.
What do most economists get wrong about the economy?
They have this one theory, which they don’t know well enough to know that it doesn’t hold together, and they just keep on applying it. It’s all based on this idea that the market will always lead you toward full employment if you get out of the way. But there’s no evidence of this working. Continue reading
Sources
- U.S.Catholic
- Image: The Telegraph
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