Economics of Myths, Fables and Legends

Have you ever wondered why people believe the things that they do? Are they using any forma of logic in their decision to believe or believe in certain things?

In Jamaica there is a saying :

"Belief kills and belief cures"

A lot beliefs are expenses that have to be incurred at the expense of the one who believes. What is this 'mumbo-jumbo'? Many times a particular belief causes an individual to certain actions that in the end hurts that individual. But the choice to believe or not believe in something may be greater than the dollar value we attach to it.

Utilitarians such as John Stuart Mill and  Jeremy Bentham suggest that each person in society receives a certain amount of happiness, or “utility,” from an allocation of society’s resources. But the same logic can be applied to someone who believes that aliens exist, witchcraft is lucrative hobby and that an itching left palm means they will run into some money soon.  

The point is they obviously receive some amount of utility from these beliefs and if they are satisfied with it who are we judge them for it. Economics assumes that people are rational in their consumption patterns or spending patterns but there is no hard and fast rule to say that all humans are rationale. If you believe that all humans and rationale and we abide by the same belief systems. Take a couple pages from history, look at 

1. The slave trade, slavers believed that Africans were like cattle, stupid and could only be put to work.

2. Hitler believed that there was a true white and Jews should be put to death, little did he know that he too was of Jewish descent 

3. And Here in Economics, Classicials believe the economy works itself out. Keynesians believe that government interventions is the best way out. But since they are flaws in both theories, it proves the latter that they are just theories. 

So the next time you, are approach my a radical mythologist, a Fabler and Legend holder, a racist or a Nazi just let them be with their belief they obviously get some satisfaction from it and  you are not being affected then there is no harm done.     

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