NotaBene .

Contradiction Between Economic Theory and Reality, Ergo, Necessity of a New Theory and Value Programmed Practice

Abstract: The study presents an analysis of the contradiction between the dominating neo-classical economic theory and economic reality. Facts and theoretical arguments are adduced proving the presence and the considerable scale of such a contradiction. An essential reason for the deficiency of the theory is its false view of the economic man. This construct is in controversy with contemporary visions of the nature of man in philosophy, sociology and psychology. There are forces and factors in economy disproving the myth of the market being an autonomous mechanism for harmonious development, which meets the criterion of justice as well; a mechanism, leaving an insignificant space for public regulation.
Another thesis expounded in the article is that of the necessity of a new theoretical synthesis to integrate real social forces and factors. This view does not mean crossing out the market as an institution. It is an accomplishment of civilization which is to be used reasonably like every other instrument. The untenability of the idea of growth stimulation is pointed out and is argued that there is need of programmed economic development on the basis of values eminent for human existence (decent material conditions, health, education, personal autonomy).

Keywords: Economic theory, market failures, corruption, politics, values.