Kenneth Arrow (1921-2017)10 March, 2017 at 18:56 | Posted in Economics | Leave a comment
A democratic polity is supposed to be based on egalitarian distribution of political power. In a system where virtually all resources are available for a price, economic power can be translated into political power by channels too obvious for mention. In a capitalist society, economic power is very unequally distributed, and hence democratic government is inevitably something of a sham. In a sense, the maintained ideal of democracy makes matters worse, for it adds the tensions of hypocrisy to the inequality of power.
Kenneth Arrow, one of the greatest economists ever, died last month at age 95.
A great modeler, yes, but also an economist who never forgot on what assumptions the models were based …