Who Is Dismal Now?
Economics was dubbed the “dismal science” in the 19th century for reasons that have been largely forgotten or suppressed. It may be that the name stuck because economics is, at its core, anti-utopian. The notion of scarcity is the foundation of economics, so economists see costs everywhere. They keep reminding people that there is no such thing as a free lunch, which is often an unwelcome message. Or maybe the name has stuck because some people are unsettled with the central role that the assumption of self-interest plays in economics. It is difficult to raise a crop of idealism from fields of self-interest, and to some, this is a dismal outcome. However, there is an optimistic side to economics that suggests the term “dismal science” is inappropriate. Economists focus on market exchange and in exchange both buyer and seller emerge better off than they were before. Their focus on exchange makes economists ready and even eager to see interactions as positive-sum. In a positive-sum inter
