A Kernel of Knowledge

I really do mean "a kernel of knowledge" as I fall in to the group of people that don't have a firm grasp on economics. From my experience with economics (a one trimester class my senior year of high school) and the readings I've had in various classes concerning economic practices, my understanding of economics is all over the place. Supply and demand come to mind... that's about it. But after reading Friedman, Keynes, and Posner on Keynes my understanding is even more skewed. Regardless, I did find a stronger connection between Keynesian economics and the way Pollan exposes the food and agriculture industry in The Omnivore's Dilemma. Government and companies such as Cargill and ADM hold the most control over farmers and their crops. Their control over corn is a system designed to keep production high and prices low (Pollan 62). With low prices we are able to consume more for less, an important factor in the functioning of our economy. As Keynes claims, consumption is the sole end and object of all economic activity. Thus farmers are getting paid little for their production, and Americans are consuming highly processed foods without much consideration for its moral implications.

The word "rational" being used in the world of economics interests me, as it is not what our standard definition of rational may be. As far as I understand what is considered rational are the choices we as humans are going to make, and those choices are based off of how advertisements and propaganda shape our supposed needs. Again the government seems to be prevalent in this discussion of what is rational. As we discussed in class, neoliberal/neoclassical economists--those who would be in favor of Friedman's beliefs--aren't concerned with rational behavior. They, instead, stick to hard, cold facts concerning supply and demand.