What is the non mainstream economic viewpoint and what is mainstream economics

Categories: Business Banking.

Problem description: What is mainstream economics? What is a Mainstream Economist? What is MBO?What is the post-quota era?

Analysis: The so-called mainstream economics is royal economics. The formulation of a country's economic policy and its direction are based on the core theories of the school.

Therefore, mainstream economics is the dominant science, and mainstream economists have become prominent figures. They are spirited, they speak with breadth and skill, they look down on other people, this is a common thing in any society, in any system, don't make a fuss.

The crux of the matter is that mainstream economics as we now think of it does not have their core theories, and their theories are crossing the river by feeling the stones. To put it more clearly, it is to take pains to find out the minds of decision-makers, and then to adopt some new terms or some puzzling mathematical models from Western economics to fool people.

If you look back at our mainstream economic theories in the past 20 years, you can confirm my view.

What is MBO?

MBO is the abbreviation of managementbuy-out in English, which means management buyout, which mainly refers to the company's management to acquire the company's management by borrowing capital or equity transactions. Through acquisitions, the managers of the business become the owners of the business. Because management buyout has played a positive role in stimulating the enthusiasm of internal personnel, reducing costs, and improving business conditions, it has become a popular way of enterprise acquisition in European and American countries in the 70s and 80s of the 20th century.

For Chinese enterprises, the biggest charm of MBO is that it can clarify the property rights of enterprises, realize the return of owners, and establish a long-term incentive mechanism for enterprises, which is the most distinctive feature of Chinese MBOs.

From the current point of view, the role of MBO in China is manifested in four aspects: first, to solve the problem of "lack of owners" in state-owned enterprises and promote the reform of the property rights system of state-owned enterprises; The second is to solve the historical legacy of private enterprises with "red hats", realize the "return" of enterprises to the real owners, and restore the true face of property rights of private enterprises, so as to remove property rights obstacles for the long-term development of private enterprises: the third is to help state-owned capital gradually withdraw from non-competitive industries; Fourth, it is necessary to encourage and restrain the management of enterprise operators and reduce costs.

It can be seen that MBOs are given high expectations.

However, it can be seen from the practice of MBOs at home and abroad that MBOs are not suitable for all enterprises. Enterprises that implement MBOs must meet at least three conditions; First of all, the enterprise should have a certain space for management efficiency; secondly, the enterprise is in a highly competitive industry, such as home appliances and some high-tech enterprises with good growth; The third point is that the company must have an excellent management team, which is also the key to the success of MBO.

What is the post-quota era?

Mainstream economists have neglected the way they communicate with the public in the first place, and should not blindly pursue the idea of being unsurprising. We know that in the West, mainstream economics prides itself on people like Samuelson and Friedman who can bend down to communicate with ordinary people. Judging from the people's attitude towards the mainstream economics and Sun Jixue, there is still a long way to go before China's mainstream economics can be deeply rooted in the hearts of the people.

When ordinary people hear words such as "corruption can increase efficiency" and "I feel relieved when I see the traffic congestion in the city", not everyone can understand the "thinking" in it.

Second, mainstream economics ignores fairness.

When the British economist Mrs. Joan Robinson wittily said that "economics saves love", I think she was referring to mainstream Western economics. Mainstream economics is considered to be an empirical science, but its implicit criterion for value judgment is clear, that is, efficiency is the highest or even the only criterion. In most areas of social life, free competition is the guarantee of maximum efficiency, so mainstream economics is essentially a social Darwinism that advocates the survival of the fittest.

In this way, the infinite admiration for efficiency has led mainstream economics to neglect the attention of the disadvantaged and ignore fairness to a considerable extent. In the eyes of the public, mainstream economics embodies a logic of disliking the poor and loving the rich, and always seems to stand on the side of vested interests.

Thirdly, another reason why mainstream economics has lost its popularity is that the level of economic research is more realistic.

In this discussion, scholars in the fields of sociology, history, and law have moved more towards the opposite side of mainstream economics, which may be caused to some extent by the different levels of research in various disciplines. One of the reasons why economics is a prominent discipline is that economics is a more pragmatic discipline, focusing more on practical problems under current conditions and opposing criticism that is far from reality. This is at a lower level in the study of the social sciences as a whole.

While other disciplines have made various criticisms of reality at a higher level, mainstream economists are saying that this suboptimal state can only be achieved at this stage, and that the ideal state can only be achieved gradually.

Finally, there is an objective aspect to the dissatisfaction caused by mainstream economics.

The first 20 years of China's reform can basically be described as incremental reform, and this stage is characterized by the fact that people inside the system are not damaged, and the welfare of people outside the system increases, so that the reform has fewer losers, and it is almost like the "Pareto improvement" of those who have not been damaged in economics. At this time, the reform was relatively smooth, and the opposition to mainstream economics lacked a realistic reason and mass foundation, so that mainstream economic theories could be disseminated in large numbers and in depth. In the late 90s, the reform deepened to the stage of stock adjustment, so that a large number of people whose interests were damaged appeared, and without receiving the minimum compensation they deserved, they amplified the voice of mainstream economics.

Mainstream economics refers to the economics that has leadership and discourse hegemony in the economic community, and plays a role in guiding, leading, guiding and influencing the formulation and implementation of economic policies.