In recent decades education is increasingly perceived as an instrument for generating economic growth and enhancing production. Unexpectedly, however, many prominent economists, throughout history, have rejected this view of education. This article examines the grounds on which Tibor Scitovsky, who was one of the leading economists of twentieth century America, objected to the spread of production oriented education. The article begins by an historical overview of the relationship between economic and educational theory. It then explains why Scitovsky held the economic (...) growth achieved in the 20th necessitates an educational reform and presents the outline of this proposed educational reform. It is argued that by distinguishing between creative and defensive forms of consumption and by highlighting the inherent tension between comfort and pleasure, Scitovsky offers an innovative and challenging conception of the desired relationship between economics and education that can serve as an alternative to the one that prevails today and amend its many fallacies. The paper concludes by briefly exploring some of the educational implications that stem from Scitovsky’s thought. It is maintained that Scitovsky’s views provides an original defense for teaching the arts and humanities and a suggestive perspective on consumer education and teaching of high culture. (shrink)

ABSTRACT Twenty years ago Leif Lewin made the case that altruistic motives are more common than selfish motives among voters, politicians, and bureaucrats. We propose that motives and beliefs emerge as reactions to immediate feedback from technical-causal, material-economic, and moral-social aspects of the political task environment. In the absence of certain kinds of technical-causal and material-economic feedback, moral-social feedback leads individuals to the altruism Lewin documents, but also to righteousness (moralized regard for the in-group and disregard for the out-group) and (...) myopia (disregard for distant consequences). The mix of altruism, righteousness, and myopia increases the focus on winning the next high-stakes election rather than on discovering or enforcing socially productive institutions. (shrink)

F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)