Behavioral Economics Implies a New Direction and a New Solution to the Crisis
If we understand the critical impact that the nature of people’s relations has on the economy, we will understand the kind of economic system that we must build in order for it to carry out its roles effectively and maintain its stability. When the economic and financial systems adapt themselves to the global-integral world, where economic ties cross borders and firms, and where people depend on and affect one another, it will stabilize the socioeconomic system. Only then will the system avoid shocks and frequent crises that take a heavy toll on us. Previous solutions to these crises are inadequate, which is why at the start of 2012 the world is facing a severe economic situation, which is actually a continuation of the crisis that began in the summer of 2007.
Yet, not only the economy must change. Because the economic and financial systems are reflections of human relations, the entire international community must provide solutions that rearrange the system of human relations. In other words, when our attitudes change toward bonding, unity, social cohesion, care for others, and mutual guarantee, we will discover the solution to today’s economic paradigm...