Dominant Culture and Economics

In his public policy speech, Paul Ormerod discusses prevailing economic views and how perceptions need to shift if change is to occur. He asserts economics shape not just public policy, but social issues as well. Working economists hold to shared views of how the world works, and all policies are filtered through this perspective. It is widely accepted among economists that to change behavior, one must change the incentives. Ormerod contradicts this statement.

As individuals act independently with their own tastes and preferences, they are also widely affected by group thinking. He uses the collapse of the banking system and the recession of 2008 as an example. Banks were judged on their portfolios and a systemic crash was not predicted. Circumstances can not be judged objectively, as narrative plays an important part. So to change behavior, values must be altered, and persuasion and stories must be used to change the dominant culture and unlock networks.