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Economics, Situational Analysis, and explaining the money economy in Max Weber

DOI https://doi.org/10.15543/MWS/2016/2/7

Omar Kassem



Mainstream economics is the most general case of the study of context bound rationality known as situational analysis, and thus a special case of an economic science which Max Weber views in its entirety. Based on Pareto rationality, mainstream economics does not give an account of the money economy, which is Weber’s aim. Weber’s generic and broad notion of rationality allows for a comprehensive account of money, and results in flows of ideas as individuals interact with their environment reflected in deep social patterns of rationality. One type of this kind of rationality is the ‘formal’ rationality which explains the existence of money and is an expression of the need of the subject individual to keep track of things in a continually changing and complex environment.

Omar Kassem studied economics at the University of Cambridge and holds an MSc and PhD from SOAS in the field of monetary economics. He has pursued a career in the City of London, Wall Street (CEO Moseley Securities) and the Middle East (CEO of Egyptian Cotton Co). He is currently an adviser and consultant to nascent political parties in Egypt. He writes for U.S. current affairs journals. He has spent five years researching and writing a book on the origins of modern mainstream economic theory, its impact on the modern world, and the use of instrumental rationality in social theories.

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