Lans Bovenberg on teaching economics

The economy as a conceptual subject

Economics offers students a cohesive story: cooperation is valuable, but it does not happen automatically. Organizing trust in reciprocity is difficult in complex collaborations where the parties cannot cross the border immediately. The fear of being cheated and robbed often paralyzes the party that must come first. To give this party more confidence that others will also honor their agreements, society has rules of the game, also called institutions. In this way, young people learn not only the hows and whats of institutions, including values ​​and social norms, but also the whys of them. With one concept, the importance of reciprocity, many contexts are clarified and connected. This is the power of economics as a conceptual subject.

By focusing on this economic narrative of the importance of collaboration and the challenges associated with it, citizenship education is provided with strong normative, scientific and practical foundations. In terms of normativity, it is rooted in the pragmatic goal of creating material value through collaboration. Furthermore, economics ensures that citizenship does not get lost in floating wishful thinking, but remains rooted in the actually observed behavior of people in daily practice.

Added value of citizenship

Citizenship education also has much to offer economic education, namely a relational vision of humanity based on a broad conception of prosperity. Current economics education in secondary school still assumes that people are hitchhikers. Even if everyone contributes to a collective good like the environment, it is always in your interest not to do so: you will benefit from the collective good without having to contribute to the costs. But empirical research over the past three decades shows that most people are not hitchhikers but citizens. Citizens differ from hitchhikers in one crucial respect: they like reciprocity. Adam Smith, the founder of modern economics, called these sentiments moral. Citizens derive a connection and meaning from their contribution to the communities with which they identify and feel (partially) responsible.

Empirical research over the past three decades shows that most people are not hitchhikers but citizens. Citizens differ from hitchhikers in one crucial respect: they like reciprocity.

But citizens are not unconditionally altruistic either. They only consider the interest of the group if they are sufficiently convinced that the group will also consider their interest. Good works are, so to speak, conditional on the belief that your interests are secure. Confidence in cooperation is therefore the most important capital of a society. Social capital measures citizenship as the team spirit of those who live in a particular place.

the image of the citizen

The citizen’s view of the human being is what economic education needs to better articulate with scientific developments. Instead of focusing only on the half-truth of individual self-interest (I-rationality), economics education also develops a second leg, the valued interest of the group (us-rationality). This prevents the economics lesson from breaking down the social capital of citizenship.

As evidenced by the growing importance of citizenship education, society’s demand for people with moral competence is increasing. They are people who can manage conflicts of interest and who dare to opt for the vulnerable people who interest us, even if it clashes with the interest I have. Due to the increasing complexity of society, these conflicts of interest between self-interest and collective interest can no longer be eliminated solely by state coercion and financial incentives.

In addition to the demand, the supply of moral skills is also increasing. Due to growing material prosperity, young people increasingly value intangibles such as connection and meaning. It should also prompt the teaching of economics to discuss that of the citizen in addition to humanity’s view of freeriding. The formal program already provides many incentives for this. But it is up to method designers, exam makers, teacher trainers, schools, and teachers to actually embed these formal rules into the culture of real economics education.

Lans Bovenberg is Emeritus Professor of Economics. This is an abridged version of the speech he gave during his farewell to Tilburg University on March 10

To quote as

Lans Bovenberg, “Lans Bovenberg on the teaching of economics”, my judgeMay 29, 2023.

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