The Theory of Economics begins at home from first principles. Who are the successful people and nations. That is the question.
I focus on the debate between Austerity and Consumerism. Economic Theory should be based on an analysis of this fundamental question. It is not about Socialism versus Capitalism. They are just the political applications of various economic theories.
When I was given £2500 by my father to conduct my BSc education with I saved as much of the money for a rainy day as possible, and worked in the Chelsea College bar serving alcohol and other drinks to students and visitors to earn money to supplement this boon. I also applied for Tuition Fee Remission successfully to the College authorities. When I graduated I took up a position with Hatfield Polytechnic as a Research Assistant, a superannuated employment with pension but quickly gave that up when visa restrictions on my Indian passport was lifted by the Home Office. This is because I saw that I did not wish to return to India and my father had always admired the British have studied under Professor Manton of Leeds University between 1952-1954 as a plant geneticist to complete his PhD from the United Kingdom, so he always wished me to settle in the United Kingdom once the opportunity came about when he was appointed as the Indian Liaison Officer at Kew Gardens under deputation by the Government of India. The United Kingdom was a land of hope and glory indeed.
My father taught me the proverb pennywise, pound foolish. It is worthwhile considering how this impacts on the home economics of a person and a family, and the macroeconomics of a nation.
Save like a miser and spend like a king is the motto. One saves every penny one can, but when there is an investment to be made, one spends like a king, for investment brings returns. The wiser the investment the greater the wealth accumulation for an individual, the family or the nation. For this one does cost-benefit analysis.
What are wise investments for a person, the family or the nation? A political party intending to govern must outline its principles in accordance with this consideration and develop its manifesto to be voted on by the people.
Do we therefore consider the environmental implications of economic theories? Is capitalism wrong, is socialism wrong? is austerity right? Do we need to consider the world economy if there is any possiblity of conducting such a enormous analysis. Do we need to adapt to the environment in relation to the provisions of Nature that we exploit?
I am not at all sure that we need to consider the environmental dimension and the needs of the future generations. If we have the right economic policies for the individual living within a State as individual peoples who deserve full employment giving them the minimum that they need to survive on and make their lives productive and harmonious so that the people are happy with the ruler of the country, that is all we should aspire to.
Is there any political party subsribing to this philosophy? No there is not in the United Kingdom. Parties are nationalistic or socialistic or capitalistic without the focus on individual liberty to develop its population into happy existence. This is the reason that there is mounting pressure on the National Health Service of the United Kingdom from physical illnesses and mental illness that are both stress-generated.