Rationality of economic man

Author: Chen Caihong
Publisher:
Publish Date: 1999-08-01
Features: The author was originally trained as an engineer and worked as a mechanical engineer for nearly 30 years. By chance, he switched to studying economics. Initially, he viewed economics from an extremely "mechanical" perspective, treating economic problems as maximizing issues under constraints. Later, he came to understand that economics must study human behavior, and further realized that human behavior is constrained by institutions, thus institutions determine economic efficiency. In recent years, he has become interested in studying morality as one aspect of economic institutions, particularly hoping to observe the evolution of moral perspectives and their impact on historical development through the trajectories of Chinese and world history. One major takeaway is that value judgments—whether right or wrong—are crucial. The significant mistakes people make, such as the Three Years of Famine and the Cultural Revolution, occur because moral judgments are inverted. Are moral judgments complex? He believes they are not; in fact, they are very simple. People go wrong because it is difficult to stick to their own judgments, even if those judgments are clear and obvious. Once superstition emerges, if people lose their clear judgment at first and are then exploited by those with ulterior motives, it eventually becomes a powerful trend. No matter how determined and courageous an individual may be, it becomes too late to reverse the tide. Preventing large-scale tragedies from occurring among humanity requires maintaining a clear mind at all times, especially creating an environment of intellectual freedom. This understanding must be embraced by the broad masses of the people, not just a handful of intellectual elites.