Philosophy of Economics

Philosophy of Economics as a Branch of Social Knowledge

In the past two decades, there has been a notable increase in attention to the philosophical problems of economics within domestic scholarly thought. Efforts are underway to understand the causes of the economic crisis in our country and to elucidate the essence of the processes occurring within the economy—an essential realm of human existence.

Historically, the study of philosophy has often been conducted without a deep connection to economic science. Simultaneously, the teaching of general economic theory has proceeded without the necessary orientation toward the achievements of philosophy as a system of knowledge concerning the fundamental nature and essence of existence. Each discipline has proudly maintained the independence of its problem domain, and rare excursions beyond one’s own borders have seldom made a significant impact. Philosophers and their colleagues in political economy have steadfastly adhered to the confines of their established themes and have been critical of those who sought to "break barriers" by exploring the interdisciplinary scientific space. Yet, it is well-known that the investigation of interdisciplinary problems is regarded as the most productive and promising avenue in science. Indeed, the issues of philosophy of economics fall into the category of interdisciplinary research.

The term "economics" is today used with remarkable frequency and at least in two significant senses:

• First, as the totality of economic activity and the social relations that arise during its reproduction. (After all, we all engage in buying and selling, producing and consuming, saving, and exchanging daily—actively participating in the realm of economic relations.)
• Second, as the science of social economy that has developed throughout the history of society.

In its first sense, economics is fundamentally a social construct; it constitutes a complex system of relationships that emerge in the formation and development of social economy: modes of production, property institutions, economic mechanisms, credit and monetary systems, labor, and management. Simultaneously, economics pertains to the activities involved in ensuring human life through material goods, products, and services—a means by which humans transform the external world and themselves, their internal worlds, and their own existence.

The economic dimension of being has become all-encompassing; it is no coincidence that contemporary individuals are referred to as homo economicus, emphasizing the profound significance of the economic sphere in human existence. The economic sphere encompasses all other dimensions of social reality—politics, ideology, morality, and human behavior (as the folk wisdom states: to understand the life of a people, one must visit their market and cemetery).

The essence of these intricate processes is explored by the philosophy of economics—the realm of philosophical knowledge concerning the essence of economic existence for humanity.

Philosophy of economics unveils the ontological content of fundamental economic categories ("property," "economy," "production," "labor," "money," "economic freedom," "needs," "economic competition," etc.), which, in their essence and significance, transcend the sphere of economics and gravitate towards philosophy. It is humanity that shapes and develops the economy: working, earning, demonstrating economic initiative, possessing economic freedom, spending, providing for needs, accumulating, and more. Economics is permeated through and through by an anthropological (human) dimension, as it is ultimately created and developed by humans and for their sake. Accordingly, the philosophy of economics seeks to reveal and examine the anthropological aspect of economics.

Thus, the philosophy of economics considers the essence of the economic processes occurring in society through the lens of human dimensions, via the various forms of human activity as subjects of economic engagement. Contemporary philosophy of economics is oriented toward the individual also because it views the individual as a force ensuring the preservation and development of society.

The philosophy of economics is a branch of social knowledge that investigates the philosophical aspects of the development and functioning of the economy as a system, the philosophical foundations of human and societal economic existence. It aspires to offer a generalized understanding of economic order, the essence and origins of economic processes and phenomena, striving to provide the fullest philosophical interpretation of human economic activity. It encompasses the study of "general, profound processes in economics, analyzed through the lens of philosophical traditions."

The scope of questions within the philosophy of economics is quite broad: the philosophical significance of economic activity, the philosophical foundations of entrepreneurial endeavors, including issues of business ethics, the role of the "human factor" in the market economy system, social justice and social responsibility, the essence of socially-oriented entrepreneurship, the importance of the spiritual component of the economy in its functioning and development, philosophical aspects of economic management processes, the role of cultural factors in economic development, questions of social partnership and its role within the economic system, the essence of the smart economy, the role of institutions, and the significance of institutional transformations in the country's economic life, among others.

The philosophical approach aims to clarify human attitudes toward consumer goods and values. The task of the philosophy of economics is to cultivate higher social and spiritual aspirations in people, fostering rational needs and a culture of consumption.

The Significance of the Philosophy of Economics:

• The philosophy of economics analyzes the principles of economic activity, connecting them to a broader worldview, exploring "non-economic" aspects of economics—psychological, moral, legal, political, and so forth—encouraging the emergence of conscious and systematic thinking about the economic whole, rejecting the dominant commodity-money perception of the economy, and presenting it in a universal, all-encompassing form. In this way, the philosophy of economics fulfills an epistemological (cognitive) function.
• The philosophy of economics strives to elucidate the specificity and essence of human economic existence and the significance attributed to human management by contemporary society. (The ontological function of the philosophy of economics.)
• The philosophy of economics determines the social interdependence of various types of distribution and cooperation in human activity, the prospects for their transformation, and establishes a "coordinate system" for the evolution of economic reality. (The worldview function of the philosophy of economics.)
• The philosophy of economics establishes guidelines and values through which individuals can define "models" of their life behavior and economic activity, creating necessary and diverse conditions for their existence and development. (The axiological (value) function of the philosophy of economics.)
• By critically reflecting on the current state of the economy, the philosophy of economics seeks to uncover its true achievements and eliminate contradictions and deficiencies, identifying "pain points" and outlining pathways for their resolution, thereby sharpening attention on new avenues for cognitive exploration. In this manner, the philosophy of economics fulfills functions of critique, problematization, and thematization.
• As a branch of social knowledge, the philosophy of economics serves as "the foundation for the formation of social management strategies and acts as a means of creating the most effective strategies for socio-economic development," thereby influencing the development of individuals' economic worldviews.
• Within the philosophy of economics, methods of economic research are analyzed, and innovative approaches (methods, techniques) for studying and analyzing the economic system are developed. (The methodological function of the philosophy of economics.)
• The philosophy of economics emphasizes the spiritual "dimensions" of economic processes and phenomena, noting the close interconnection between economics, on one side, and culture, science, morality, ideology, and philosophy, on the other; it endeavors to understand the humanistic paradigm of economics as a system and its fundamental spiritual foundations.

The problems examined within the philosophy of economics are particularly relevant to contemporary Ukrainian society, which is striving to establish a civilized form of market relations and normalize cultural and social life.

Therefore, to gain a comprehensive understanding of what economics is, it is worthwhile to analyze this phenomenon through both of the aforementioned meanings of the term "economics." This entails simultaneously tracing the path of economic relations formed throughout human history and the trajectory of theoretical inquiries and generalizations regarding these relations.