What the Economy Really Is: People, Pursuits, and Social Relations

Introduction: Breaking the Machine Metaphor

In the current statist global order—established and maintained by Western imperial states—social and economic issues are treated primarily as technical problems to be engineered and managed in a top-down manner through coercive measures. The economy, in particular, is conceptualized and spoken of as though it were a machine: something to be “jump-started,” “stimulated,” or “cooled down” by central authorities.

This mechanistic depiction is not accidental. It reflects the philosophical roots of Western economics and other social sciences, which rest on utilitarianism, positivism, and a materialist, Darwinian worldview that reduces people to variables and societies to inhuman, mechanical systems. The result is a flawed and detrimental narrative—one that misleads both scholars and the public into believing that “the economy” is a separate entity from society, to be controlled by technocrats through top-down intervention.

This article challenges that foundational error. It demonstrates that the economy is not a detached mechanical structure but a living, relational process—the very fabric of society itself. It involves real people, their work, pursuits, relationships, values, and choices. The economy is society in motion.

The consequences of misunderstanding the economy are severe. Centralized, coercive, and technocratic attempts to “manage” the economy—as if tuning a machine—have led to economic instability, social unrest, and widespread structural injustice. If we are to build a just and prosperous world, we must first understand what the economy really is.

This article is structured in four parts:

1. Understanding what the economy is

2. The role of money as the economy’s fundamental good

3. An overview of socioeconomic systems

4. A critical look at the global economy

1. Understanding What the Economy Is

Contrary to the prevailing view, the economy is not a separate, mechanical system within society—like an engine that can be tuned, rebooted, or fixed by pulling levers and pushing buttons. Yet this is exactly how mainstream economists and technocrats treat it. They describe the economy as “overheating,” “cooling off,” or needing a “jump-start”—as if it were a machine in need of repair.

These metaphors are not harmless. They condition the public to view the economy as an object to be managed by governments and technocratic experts. They also reveal the influence of Western materialist and mechanistic philosophical thought, which has shaped not just economics but the entire social sciences landscape under statist frameworks involving coercion, confiscation, and repression.

This view is false and dangerous. The economy is not detached from society—it is society. It is the sum of people’s lives, choices, pursuits, and relations, woven together in networks of social cooperation, exchange, and mutual service.

Everyday Life Is the Economy

People often think of “the economy” as something separate from activities like religion, sports, charity, or family life. But this is a misconception. Religious institutions, for example, are major economic actors—raising money, maintaining buildings, organizing events, and funding social programs. From the construction of places of worship to regular donations, religious activities are inherently economic.

The same is true of sports. Stadiums are built, tickets are sold, athletes are paid, and entire industries revolve around sponsorship, broadcasting, merchandise, and fan engagement. These are not isolated from “the economy”—they are integral parts of the economy.

In truth, every aspect of social life—from recreation to charity, from marriage to education—involves economic choices, actions, and consequences. The idea that there is a clear boundary between “economic” and “social” activity is a false dichotomy imposed by statist, technocratic models.

The Language of Control

Even subtle shifts in language reinforce this separation. For instance, media reports often refer to “Germany’s economy” rather than “the German economy.” The former suggests that the economy is a separate tool belonging to the government. The latter recognizes the economy as a living part of the people themselves. These distinctions matter—because they reflect how we think about economic agency, ownership, and control.

Mainstream economists frequently refer to “the economy and society,” as if they are two distinct entities. But this framing obscures the truth: the economy and society are one and the same. They are composed of people pursuing their goals, solving problems, and interacting peacefully and voluntarily.

The Economy Predates the State

Another major misconception is that the state stands above or apart from the economy—that it exists to organize or “run” it. In reality, society—and thus the economy—preceded the state. The economy emerges from voluntary human activity: from individuals, families, communities, and institutions engaging in production, exchange, and cooperation long before governments were formed.

The economy reflects the decentralized decisions of people building homes, starting businesses, learning skills, forming families, giving to charities, and creating value through peaceful cooperation. These everyday actions are the heartbeat of the economy.

Western economics has conditioned the world to believe that the economy is a machine to be controlled by the state. But it is not. The multiple ongoing crises on global, continental, and national levels are proof that economies cannot—and should not—be centrally managed through coercion and technocratic manipulation.

A structurally just, stable, and thriving economy—that is, society—cannot be built or maintained with statist systems of centralized control, coercion, and technocratic management. Structural justice, economic stability, and broad-based prosperity are irreconcilable with statism.

A Human Definition

To truly understand the economy is to see it for what it is: a dynamic, decentralized network of human pursuits, exchanges, and social relations. It is not a machine or a mechanical structure to be engineered but a living process guided by human purpose, moral principles, and voluntary cooperation.

The economy involves people choosing and acting to meet their needs and aspirations—whether as individuals, families, businesses, institutions, or even communities—within a context of indirect exchange enabled by money. It is not something to be managed from the top down but something to be understood, respected, and nurtured from the ground up.

2. Money: The Fundamental Good in the Economy

The economy is a living network of human choices, actions, and relations; money is its lifeblood. Yet despite its centrality, money remains one of the most misunderstood elements of economic life—even within the economics profession. Money is not economic wealth or a government tool—it is a vital product that facilitates peaceful human exchange. It plays three essential roles:

1. Medium of exchange – enabling indirect trade beyond barter
2. Instrument of account – measuring value, prices, and profit/loss
3. Store of purchasing power – preserving (and transferring) value over time

These functions are inextricably linked, making money the fundamental good in the economy and the cornerstone of a free, just, and prosperous society. By enabling indirect exchange, money allows for specialization, large-scale cooperation, and economic growth. It eliminates the limitations of barter and creates the possibility of a dynamic, decentralized marketplace.

Money Makes the Economy Possible

Money communicates essential information: prices, costs, and value signals. It facilitates decision-making for producers, consumers, savers, and investors alike. This system of monetary calculation and coordination allows society to function in an ethical and effective way—without the need for central planning, technocractic management, or coercion.

Money is the lifeblood of the economy—it represents purchasing power, facilitates economic activities, and communicates crucial information. This decentralized, peaceful, and voluntary process requires no state control, and money prices naturally coordinate the economy with a level of stability, productivity, and prosperity unmatched by coercive systems.

Unsound Money, Broken Economies

When money is corrupted—through a policy of monetay inflation (artifical currecy and credit creation) and manipulation—the entire economy suffers. Prices lose meaning, savings are eroded, and productive investment is discouraged. Inequality grows, instability spreads, and corruption becomes normalized.

As described in the foundational Africonomics paper:

Existing fiat monetary systems are examples of unsound money… The fiat era also led to increased confusion, distortion, and disarray in Western economics and the other social sciences, resulting in over-indebted, heavily taxed, chronically unstable, and distressed economies worldwide.

Since 1971, when the U.S. dollar officially became a fiat currency, the global economy has operated under a system of unbacked, government-issued money. The consequences have been dire—particularly for developing nations, whose economies suffer under rampant inflation, government debt issues, arbitrary currency devaluations, and monetary manipulation imposed by global institutions.

The Imperative for Sound Money

A sound monetary system is essential to economic justice, stability, and prosperity. Sound money preserves value, reflects reality, and enables peaceful, voluntary cooperation. It underpins civilizational progress by providing the foundation for stability, trust, decentralization, and long-term planning.

By contrast, fiat money systems—backed by coercion and managed by central banks—facilitate structural injustice, political manipulation, and social decay. In the Africonomics paper, I further note:

“A society that seeks to uphold moral principles and maintain structural justice, economic prosperity, cultural flourishing, and social harmony must adopt an entirely sound monetary system as a foundational principle.”

This is especially critical for Africa and the developing world, where fiat currency regimes have devastated economies, undermined sovereignty, and impoverished millions. The call for sound money is not merely technical—it is ethical, social, and civilizational.

3. The Various Socioeconomic Systems

Understanding the economy also requires understanding how it is structured and governed. Not all societies are organized according to the same principles. Some are founded on voluntary cooperation and individual liberty, while others are built on central planning, coercion, and control.

To categorize these systems, The Scale of Statism offers a valuable framework. It ranks socioeconomic systems based on the extent of state involvement, centralization, and technocratic control—from the freest to the most oppressive.

The Six Stages of Statism:

Stage 1 – Free-Market Capitalism (or Free-Market Economy):

A just, peaceful, and civilized system rooted in voluntary exchange, individual rights, sound money, and minimal state interference.

Stage 2 – Crony Capitalism:

Markets still exist, but political favoritism and corporate-government collusion distort competition, create winners and losers, and undermine free enterprise, sound money, and justice. This is the stage where statism and, consequently, systemic corruption begin.

Stage 3 – Mixed Economy (Social Market Economy):

The state plays a substantial role in guiding and managing economic life through regulation, taxation, and government spending.

Stage 4 – Economic Fascism:

Authoritarian control intensifies. The state heavily directs economic activity, though nominal private ownership remains. This system is more noticeably centralized, confiscatory, and repressive.

Stage 5 – Democratic Socialism:

Extensive state ownership and redistribution under a democratic façade prevail. High taxes, large welfare states, central planning, and openly authoritarian governance also prevail.

Stage 6 – Marxist Socialism (Totalitarianism):

The most centralized, oppressive, and violent socioeconomic system. Individual rights, private property rights, and freedom are severely repressed as the state maintains full ownership of all relevant production and distribution means, with near-total control over economic and personal life. This system often includes a god-like elevation and significant cult of personality surrounding the leader.

The Myth of Modern Capitalism

Contrary to the established view, Western economies are not free-market capitalist systems. While they have adopted some elements of capitalism—private property and consumer markets—they are fundamentally statist. Governments exercise vast control through taxation, debt, regulation, and monetary manipulation.

What is commonly called capitalism in the contemporary world is actually statism. As I first remarked in The Scale of Statism, one of the most significant and detrimental fallacies of our time is the belief that the United States, other Western economies, and the global order represent free-market capitalism. In reality, they are heavily statist systems—far closer to socialism than to genuine market economies.

This misconception has had severe consequences. It allows interventionist states to pose as capitalists while practicing coercive, extractive, and repressive governance that distorts, destabilizes, and insidiously impoverishes economies.

Technocrats as Mechanics

In these statist systems, state officials act like mechanics trying to “fix” the economy—jump-starting growth, stimulating demand, tightening policy, or cooling inflation. But unlike machines, economies are not mechanical systems—they are networks of human actions and relations driven by principles, pursuits, and voluntary interaction.

Central planning and technocratic management may appear sophisticated, but this approach is tyrannical and inevitably leads to distortions, injustices, and destructive consequences. It requires systematic coercion, surveillance, and violations of people’s natural rights. Over time, such repressive control erodes prosperity, peace, and civilization.

The Tyranny of Technocracy

Technocratic economic management is not neutral—it is tyrannical by design. It treats people as inputs, not individuals; as problems to solve, not persons to respect. It involves constant violations of natural rights: the right to life, liberty, and the ownership of self and property.

The result is a global socioeconomic order marked by corruption, oppression, conflict, stagnation, and state aggression—not justice, peaceful relations, human flourishing, and civilizational advancement.

The true tragedy is that the current Western racialized and statist system was not inevitable. The West had the opportunity to build a genuinely free-market global order underpinned by sound money—but instead, it constructed a statist world defined by fiat money, military dominance, conflict, and economic dispossession.

The Ethical Standard: Free-Market Capitalism

Among all possible systems, only a free-market economy—rooted in voluntary cooperation, respect for natural rights, and sound money—meets the ethical and practical standards of a just and prosperous society. It does not require systematic coercion and repression to function. It does not centralize power, confiscate legitimate property, or enforce conformity. It enables peaceful coexistence and human flourishing.

Statist systems, by contrast, inherently involve coercive, fraudulent, confiscatory, and repressive policies enforced through state aggression. They are not just theoretically flawed and practically inefficient—they are unjust, uncivilized, and destructive.

4. The Global Economy

Just as individuals and communities form economies through cooperation and exchange, nations also interact economically through international trade and commerce. No country operates in complete isolation. Even closed economies like socialist North Korea or Cuba engage in some form of cross-border exchange.

What we call the global economy is not a singular, centralized system—it is a vast, dynamic network of transactions, relations, and movements involving goods, services, capital, technology, labor, and ideas. It encompasses everything from multinational business activity and foreign investment to trade logistics, financial systems, currency exchanges, and cross-border nonprofits.

Today’s global economy is far from free and market-driven. It has been shaped and dominated by Western statist powers, particularly since World War I and especially since the United States emerged as the sole global superpower in 1991. Overall, the global economy is a Western construct, shaped by Western utilitarian, positivist, and Darwinian frameworks.

State-Managed Trade Masquerading as Free Trade

What is typically labeled “free trade” is, in reality, state-managed trade, governed by international agreements negotiated between governments, often for geopolitical advantage. These so-called free trade agreements are riddled with tariffs, quotas, subsidies, licensing requirements, and political leverage. They reflect not the spirit of open and free markets but the interests of powerful states and corporations.

Free trade is a voluntary, ethical exchange across borders, not a global network of top-down, state-controlled commerce. Genuine free trade fosters peace, cultural exchange, mutual understanding, innovation, and prosperity. It enables diverse human groups to collaborate, share ideas, and benefit from each other’s contributions.

The modern racialized and statist approach does the opposite: it breeds distrust, conflict, isolation, and economic warfare. Trade is increasingly used as a tool for national security, geopolitical manipulation, and leverage rather than as a mechanism of rapprochement and peaceful cooperation.

Protectionism and Fragmentation

In recent years, the world has seen a rise in economic nationalism, protectionism, and geopolitical tension. Governments impose tariffs, manipulate currencies, subsidize domestic industries, and weaponize trade to punish rivals. Tariff increases and a potential trade war are dominating news headlines worldwide. Mercantilist thinking—once considered obsolete—has reemerged, or perhaps never truly left, with notable strength.

This fragmentation undermines economic growth, global peace, and human flourishing. Instead of fostering prosperity, international trade is increasingly seen as a threat—fueling resentment, distrust, and retaliation.

As the Brookings Institution observes:

The global economy is on an unsustainable path characterized by widening economic and social inequities, environmental degradation, and increasing concentration of poverty and deprivation that threaten global peace and prosperity. The global economy remains in a precarious state amid the protracted effects of the overlapping crises throughout the past several years. Global economic growth is projected to slow in the coming months; inflation pressures persist. Heightened financial risks amid recent bank failures, elevated sovereign debt levels, and persistent geopolitical tensions, among others, further cloud the economic outlook.

This precarious situation is not due to “too much capitalism” or “too much globalization.” It is the result of statism on a global scale—the dominance of governments over economic life, both domestically and internationally.

Fair Trade Is Free Trade

Many call for “fair trade,” believing that markets are inherently exploitative. But trade, by nature, is fair because it is voluntary. Unlike government policies or mafia activities, trade and commercial transactions are consensual and do not involve coercion. Each party gives what they value less in exchange for what they value more. When trade is free from force and fraud, it is just by default.

The confusion arises because the current system—wrongly branded as free trade—is actually politicized and coercive. When Western governments subsidize their industries, flood markets with fiat money, and manipulate global institutions, they distort the playing field and corrupt the principle of voluntary exchange and free markets.

To advance justice, prosperity, and civilization, the world must establish genuine free trade rooted in mutual benefit, not state-managed trade arbitrarily driven by political alignment or geopolitical power plays.

Statism Is the Fundamental Problem

The fundamental problem with the global economy is not openness but control. It is not international exchange but statist interventionism. Whether in domestic policy or international commerce, centralization, coercion, and technocracy have led to the very crises they now claim to solve.

Trade should be a channel for peace, cultural exchange, and mutual enrichment—not a battlefield for rival powers. Only when the global economy is grounded in natural-moral law, liberty, and sound money can it fulfill its potential as a vehicle for human rapprochement and flourishing.

Conclusion: The Economy Is People, Not a Machine

Mainstream economic discourse continues to describe the economy in mechanical terms—something to be managed, jump-started, or fine-tuned by technocrats. But this is a profound error with destructive consequences.

The truth is simpler and more human: the economy is society itself. It is made up of people—of their lives, values, goals, actions, and relations. It reflects the daily pursuit of meaning, productivity, cooperation, and improvement. When we treat it as a machine, we strip it of its humanity and invite coercion, oppression, and corruption.

The economy is not separate from society—it is society. It cannot be centrally managed without systematically violating natural rights and causing structural injustices. Attempts to do so invariably result in tyrannical systems, instability, impoverishment, and policy-caused human suffering.

A proper understanding of the economy requires us to see it for what it is: a decentralized and dynamic network of human choices, actions, and relations. It involves production, trade, saving, investment, entrepreneurship, and exchange, all built upon respect for property, liberty, and voluntary cooperation. At the heart of this ethical system is money—the economy’s lifeblood and fundamental good, which must be sound and trustworthy if society is to flourish.

Today’s statist systems—anchored in fiat money, protectionist trade policies, confiscatory taxation, and technocratic management—have corrupted the economy and contributed to a global decline in peace, prosperity, and justice. The result is widespread economic turmoil, stagnation, social unrest, and continued geopolitical conflict.

To reverse this, the false metaphor of the economy as a machine must be rejected. We must embrace a truthful, ethical, and human-centered understanding—one that recognizes the economy as the living process of people pursuing their goals and cooperating with others. The future of economics and human civilizational progress depends on this shift in understanding. The economy is not a mechanical system to be managed—it is a society of people with dignity and agency to be respected.