This paper is a theoretical study arguing for a reexamination of the concept of social harmony that common to the economic field, in light of a new direction for economic theory : the notion of economic peace. It highlights why there is no one-way solution leading once and for all to social harmony and why a conception of competitive equilibrium is insufficient.
Modern academic economics is not explanatorily successful. Although this situation has long been evident, it has become widely recognised only with the onset of the recent economic crisis. With the situation now widely acknowledged, however, various initiatives have been launched in the hope of achieving something better. One highly significant such initiative has stemmed from George Soros’ insight that whilst reflexivity is a widespread feature of social reality, the sorts of economic theories that have dominated academic economic output are fundamentally inconsistent with it. Here I argue that whilst Soros’ contribution contains insight, it does not go far enough, and risks having the insights contained neglected due to the inclusion by Soros of various questionable assessments that are in any case unnecessary to the central argument.