CONVENTIONAL ECONOMIC THEORY - A CRITIQUE HIGHLIGHTING FLAWS IN AMERICAN STYLE CAPITALISM

For 200 years, we have lived with capitalism in its American style forged easy access to raw materials. Despite entering an era of scarcities, economics is still anchored in growth and distribution theories reflecting the world of plenty. Production theory does not recognize the significance of sharing of knowledge and group behavior introduced by ICT. Consumption theory is still about buying 'more', neglecting the element of uncertainty. Competition has been eradicated and replaced by a limited number of gigantic corporations. Only recently has economics started to go interdisciplinary to incorporate psychology and brain research to explain behavior when confronted with economic choices and the difference between individual and group behavior.