Economic Science Lost in the Dialectic of Globalization

Abstract

The dialectic of globalization suggests that a “territorial†state is going to be replaced by a “market†state. A “market†state is a state dominated by big transnational corporations (TNC) and big transnational banks and presumably demands some sort of world government. Such a drastic but evolutionary change should be followed by new economic knowledge. Cutting-edge technology in the possession of TNCs does not allow the renewal of national economic policies whether those contain protectionism or a Keynesian approach. Economics, as it can be found in standard textbooks, is based on the principle of diminishing returns and deals with economic policies of “territorial†state. In this context, the entire field of microeconomics along with macroeconomics begs to be reconsidered from the point of view of increasing returns and the global economy. The World has entered into economic globalization without an appropriate economic theory. Economic science has lost itself in the labyrinth of globalization.
Keywords: Globalization, Power, Interests, Economic theory, Mega-capitalism.