Economic Theory of Top One Percent: Blindfolds Created by Economics

Authors

  • Asad Zaman Monetary Policy Committee, State Bank of Pakistan
  • Nadia Hassan International Institute of Islamic Economics, International Islamic University, Islamabad

Abstract

Conventional economics theory against poor and works
very well for top 1%. Discussion of some central concepts
reveals how this theory gives an appearance of
objectivity, fairness and equity, but conceals strong bias
in favor of the rich. Negative outcomes of this theory are
observed at global level particularly during Global
Financial Crisis (GFC) 2007-08. Frequent empirical
failure of economics requires studying the real world
issues and actual behavior of human beings. But
economists continue to bring arguments and justifications
to systematic failures. It highlights their conscious
theoretical support to the narratives of top 1% at expense
of the bottom 90%. It blindfolds economists towards
reality, and let them consider natural human traits of
cooperation, generosity and social responsibility as
anomalies. On the other hand, Islamic economics defends
the cause of bottom 90%. This study briefly illustrates the
deceptions of ET1% in some core concepts and its
contrast with ET90%. It provides sufficient evidence to
recognize the hidden objectives of current economic
theory.

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Published

2020-10-13