Introduction: Towards a New Paradigm

Abstract

Economics has always been in a crisis since it broke away from social philosophy in the late eighteenth century. But from time to time this crisis has been particularly acute. Such was the case at the turn of the last century when the classical predictions proved less and less true and, in response, the marginalist schools emerged. Such also was the case at the beginning of the 1930s when the proof of the established harmony propounded in that theory was contradicted by the Great Depression, giving rise to the new macroeconomics pioneered by Keynes. There is nodoubt that contemporary economics is in a crisis, at least if crisis is defined as the inability to meet the challenge of the times. Problems like mass poverty, unbalanced affluence, increasing regional economic disparities, imbalances in population development, irrational disposition of non-renewable resources, and production and consumption processes ill-adjusted to the limited carrying capacity of the environment are among many pressing problems awaiting solution by economists.

Time Present and Time Past are both perhaps Present in Time Future, and Time Future contained in Time Past.

T. S. Eliott, Four Quartets.

I gratefully acknowledge comments and suggestions by Professors Takao Fukuchi, Takuma Yasui. S. D. B. Picken and Mr Mitsuo Sasaki. I owe a particular token of gratitude to Mr Lee E. Edlefsen who supported the project in many ways and also made useful comments on my essay. The responsibility for any remaining errors is my own.