The lecture will examine the diverse understandings of economic relations.
Aristotle established the distinction between economics (the household art) and chrematistics (profit-making activity) and treated the latter very negatively. In our time, economics is aimed at satisfying the needs of people in the circumstances of limited resources. The modern science of economics studies relationships developed by humans via the processes of production, consumption, distribution, and exchange of services and goods. These relationships can be described in mathematical terms using game theory. Unfortunately, economics as a science does not know the answer to the question “Why are you so smart, yet so poor?”
“He was reproached for his poverty, which was supposed to show that philosophy was of no use. According to the story, he knew by his skill in the stars while it was yet winter that there would be a great harvest of olives in the coming year; so, having a little money, he gave deposits for the use of all the olive-presses in Chios and Miletus, which he hired at a low price because no one bid against him. When the harvest-time came, and many were wanted all at once and of a sudden, he let them out at any rate which he pleased, and made a quantity of money. Thus he showed the world that philosophers can easily be rich if they like, but that their ambition is of another sort.”
(Aristotle. Politics)