The latest issue of Newsweek surveys a number of recent economic studies which suggest that economic growth may have a great deal to do with attitudes of a nation’s people. Newsweek writer Stefan Theil writes,
Much of the worldwide economic and political debate these days circle around ensuring continued growth—which, it’s hoped, will help various countries escape the global downturn, create more jobs and finance the rising cost of social services. What the conversation overlooks is that it turns out some countries might not want to grow.
These recent studies have been best summarized by Meinhard Miegel, of the think tank Denwerk Zukunft, who found that “while two thirds of Germans favor economic growth in principle, only about a sixth of them are willing to work for it. The rest value leisure, safety and early retirement over work and achievement. Given these attitudes, says Miegel, the popular idea that a low-birthrate country like can grow its way out of the rising costs associated with an aging population ‘is reckless and built on sand.’”
But where does Weber come in? Theil continues…
Miegel might be unduly pessimistic, but he is part of a growing movement of experts who argue that economic growth is actually dependent on a state of mind. In fact, the idea goes back to Max Weber, the German sociologist who argued more than a century ago that England’s Protestant work ethic gave rise to modern capitalism. Today’s Weberians aren’t sociologists wielding historical arguments, however, but economists, pollsters and biologists working with actual numbers and data sets. Their interest in how personal attitudes might affect growth is part of the broader reinvention of economics, in which the classical view—that people make rational choices in a world of perfect information—is coming under increased scrutiny. The movement also reflects rising concern over whether growth can be increased—especially now with the ugly specter of stagflation in large parts of the globe.
Economists now claim Weber as their own…sociologists don’t work with ‘actual numbers and data sets?’
