Economic Ontology - Philosophical Concept | Alexandria
Economic Ontology, a branch closely aligned with the Philosophy of Economics, delves into the fundamental nature of economic reality: what exists in the economic world, and the character of its existence. It's not simply about describing markets or crunching numbers, but about questioning the very building blocks – money, value, rational actors – that underpin economic theories. Often confused with economic methodology or the history of economic thought, economic ontology grapples with much deeper, often unstated, assumptions.
Early considerations of what we might now consider economic ontology can be traced back to Aristotle's writings on household management and usury in Politics (c. 350 BCE). While not explicitly labeled as such, Aristotle questioned the inherent nature of wealth and the legitimacy of certain economic activities, launching inquiries into the very nature of economic things. These rudimentary explorations occurred against the backdrop of the burgeoning city-states of ancient Greece, where trade flourished, and philosophical discourse challenged conventional wisdom. The subtleties of his arguments, especially regarding the "natural" and "unnatural" acquisition of wealth, continue to spark debate today.
Over the centuries, ideas solidifying into the field ebbed and flowed, often intertwined with moral philosophy and political economy. Adam Smith's The Wealth of Nations (1776), while a cornerstone of classical economics, implicitly posits a certain ontology of self-interested individuals and the "invisible hand." Later, Karl Marx's Das Kapital (1867) offered a profoundly different ontological framework, with its focus on class struggle and the inherent contradictions within capitalism. Intriguingly, the specific term "economic ontology" didn’t gain widespread use until much later in the 20th century, yet its presence as a core concern is undeniable.
Today, Economic Ontology examines the way that we construct economic reality. It questions assumptions about rationality, choice, and the role of institutions. Its relevance is apparent in contemporary discussions about inequality, climate change, and the future of work, because those discussions rest on a specific, albeit contestable, understanding of what economic value means. So, what if the fundamental units of analysis within economics are not as fixed or objective as we presume?