“Economic Theory” and “Economic Thought”: Which is more important now?

▼ Countermeasures against coronavirus and resumption of economic activities.

However, in response to this question, one economist has said that “economics so far cannot respond to the situation of the new corona”.

▼Prof. Uzawa’s thoughts:

In response, Professor Uzawa argued as follows. That is, for example, “medical care, which is the core part of social common capital, must cooperate not to use the market mechanism but to protect its activities from a more humane standpoint.”

▼Prof. Hirofumi Uzawa

▼ Current medical system in Japan

▼ Here are the claims of the author of the article:

  • Under these circumstances, what is needed is not “an economic theory” such as how much 100,000 yen per person will affect gross domestic product (GDP), but “run a rich economic life and develop an excellent culture.” “It makes it possible to maintain a stable, humanly attractive society in a stable manner.”
  • Based on this way of thinking, management support to medical institutions from the reserve cost incorporated in the supplementary budget must be immediately implemented.
  • And it also means a break from the market fundamentalism, which has influenced Japan’s economic policy for many years.

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