Hoisted from the comments, and from emails, here are a few answers to this question: what is the point of the economy?
Luke, via email, writes
I think the point of the economy, and any economy is too complex for most to understand due to huge quanity of variables involved. That’s why I always question what an “economist” says and always pay more attention to PhD economists, like yourself and less to media “economist”, like the many who have popped up all over Ireland in the past 12 months.
Tom, via email, writes
The point, as I see it, is to provide a means by which people who are generally useless at most things (sometimes good at a few things…but only sometimes) can interact with very capable people, who are extemely good at at least one thing, to meet their material needs (whether necessary or desired) and, in extreme cases, to contribute to the wellbeing of others. (The Catholic Church is not, by the way, an example of an ‘extreme case.’) Those who are skilled tend to deliver more to the economy than they receive, and those less capable (like economists) take more than they deliver. Of course, there are times when the perceived value is great for what appears to be little effort – like the contribution of Neoclassical economists before the Fall 2008. In the short-run, an economy may be more about believing that it leads to social growth and properity; in the long-run, as Keynes reminded us, we’re all dead. Thankfully.
Martin, in the comments, writes
I think an ecomony should be a mechanism open to all participants to collaboratively provide for the well-being of society by ethical and equitable means.
The unadulterated economy allocates scarce resources, usually efficiently. To combat some instances of market failure, we sometimes get a regulated economy. To provide a social safety net, we need a welfare economy. So I’m in favour of an adequately regulated (not over-regulated, but adequate!) economy that addresses welfare concerns.
To get a philosophical basis for why we should have a welfare economy I would recommend John Rawl’s Theory of Justice: http://tinyurl.ie/768
Paul, in the comments, writes
I think an ecomony should be a mechanism open to all participants to collaboratively provide for the well-being of society by ethical and equitable means.
Extremely interesting thoughts gentlemen, thank you.