The Minister of Finance Faces a Sour Reality

It is often argued that the usefulness of theory is limited. At least it is limitied to its usefulness when comes to understand a complicated and complex reality. The problem is often that Western science is built on the idea that if you decide what is most important and ignore the rest, then you have a theory. It is not often understood though that the theory in question is only valid if the premises it is built is valid. Now, for instance, reality is a tricky thing! It changes and Western science is basically built on the use of quantitative method. However, quantitative method is very bad for forseeing change, as change is qualitative in its nature. Especially this is concerning the spread of the doctrine that is called economics.

As a whole it may be correct that economics is to be considered as a science, but what generally is presented in media and at universities is not science; it is a simple doctrine. Doctrine is a simplified understanding of complicated and complex social relations and how to deal with them. The reason behind the use of a doctrine is that it makes it possible for everybody to understand and act in the same direction. This is generally a good thing. Unless the doctrine points in the wrong direction. Then it is a bad thing. Tricky stuff economics. Add doctrine and you may end up in a mess...

Let me tell you a little story. Once upon a time there was a rather small country way up north. The people lived fairly happy until one day there was a new government elected. The new government was educated at the finest universities in the world. Except one of them who bought his exam on the Internet. The new government had a plan; they where going to change the smallish country exactly as the model in the economic textbook they had red at the university suggested. This was not just a plan! They actually implemented it. But they were a bit unlucky as a huge financial crisis one day knocked on the door and made a visit.

Some time after this unlucky event the Minister of Finance went to shop some food for his Friday evening dinner. He was going to surprise his family with seafood. As all the people in this tiny country the Minister of Finance was rather small himself. In fact, he was a dwarf. But as he claimed; "-Maybe smallish on the surface, but inside a giant of a man!"

He approached the saleswoman selling fish at the local fish market and asked her:

"- How much do you charge for the seacucumber today, mrs?"

"- It will be 20 Euro for a kilo, mr Minister of Finance!" answered the fish-saleswoman, who immediately recognised her customer.

"- Right, then I will have two kilos of the seacucumber!"

"- Okay, that will be 45 Euro then!" said the saleswoman.

"- 45 Euros! But you said 20 Euro per kilo?" the Minister of Finance protested.

"- Yes, but we have a 5 Euro exchange fee added..." said the saleswoman in a relaxed manner.

"- Okay! said the Minister of Finance and handed over a 50 Euro bill to the fish-saleswoman. He got his package of seacucumber back with a receipt. He suspiciously studied the receipt.

"Wait just a minute here!" he said angrily. "You have charged me 50 Euro, not 45!"

"- That's right, there is also a salesfee, originating from the fishermen not being allowed to catch fish under a certain size. It is to compensate them and their hungry wifes and kids!" she answered.

"- This is nothing but theft!" the angry Minister of Finance screemed. A lot of people turned around and looked surprised on the smallish angry man.

"- No, mr Minister of Finance!" said the fish-saleswoman. "This is a market economy!"