Social Construction of Economic Phenomena - Philosophical Concept | Alexandria
Social Construction of Economic Phenomena: At its heart, this field examines the idea that economic concepts, assumptions, and realities – from the very idea of "money" to complex market behaviors – are not simply objective facts, but are shaped, determined, and maintained by shared beliefs, social practices, and cultural narratives. Often misunderstood as denying the reality of economic forces, it rather proposes that our understanding and engagement with those forces are profoundly influenced by the social world.
While a fully articulated "social construction of economics" is more recent, its roots can be traced back to earlier musings on the nature of value. For example, some see hints of the concept in the 17th century writings of Bernard Mandeville in his The Fable of the Bees (1714), which controversially suggested public benefits could arise from private vices, thus questioning straightforward moral judgments about economic activities. This highlighted the idea that ideas about 'good' and 'bad' impacted the economy as well. Such early insights, though not explicitly framed as 'social construction,' hinted at the constructed nature of economic valuation and social acceptance of certain economic practices.
The 20th century saw critical theory, sociology of knowledge, and linguistic turn influences solidify this perspective, with key texts such as Berger and Luckmann's The Social Construction of Reality (1966) providing a theoretical framework applicable to economics. Thinkers like Michel Foucault have also impacted this view, asking us to reflect how powerful discourses shape our perceptions of the economy. This allows for fascinating questions. Does the concept of 'rational economic man' truly describe human behavior, or does it create and reinforce specific kinds of behavior? What role does language play in shaping our understanding of markets? Can we construct alternative economic realities through different sets of social agreements?
Its legacy lies in encouraging us to question the seemingly immutable laws of economics, thus promoting an awareness of how cultural values and power relationships shape our economic system. Its enduring intrigue remains in its potential to liberate us from accepting the status quo, instead daring us to imagine and even construct more equitable and sustainable economic futures. What if we could collectively redefine 'value' beyond mere monetary terms, fostering ecological stewardship and human well-being?