Chris Dillow: Why economists need history

Chris Dillow argues Why economists need history

Reigning in monopoly power requires governments to overcome these forces. And that in turn requires the growth of either a threat to capitalism itself or at least a countervailing power to capital. It's no accident that capitalism was more equal (and productive) when there were strong trades unions and a threat of communism.

So yes, I think we do need intellectual (and social and economic) history - because it teaches us that meaningful improvements in economic policy must be a collective effort and not merely clever people proposing technocratic tweaks.

Emphasis Mine

This really requires a significant portion of the proletariat to raise its class consciousness enough to confront the forces of Capitalism. Using the ERA (experience, reflection, action) model, workers should:

1.		Experience what is happening. This means articulating what is happening to them. Articulation brings the experience to the foreground. It can be simple as saying "This is sucks!". It is a realisation that things are right somehow. It may be something simple as a feeling of unease.
2.		Reflect upon this experience. This is when theory and a knowledge of history comes in. The current state of things has arisen from the decisions made in the past. It is vital that people understand that society is a human construct that is reproduced daily. Rules and customs exist to solve problems. We need to understand what those problems were, and why those choices were made. Theory helps us to clarify our thinking by focusing on what is important.
3.		Act upon this reflection and experience. What happens next depends on what you perceive your capabilities to be and what reaction you can survive. Be very aware that any action you take will incur a reaction from those whose believe that they benefit from the current system. The intensity of this reaction will be proportional to the fear that they feel.
4.		Repeat