I get the impression that a lot of people in the west fundamentally fail to understand what the purpose of an economy actually is.
An economy is a model for allocating labour and resources in a way that meets the needs of the people in the country.
The original argument for capitalism was that market economy with private ownership is the most effective way to allocate labour and resources in a way that benefits everyone.
Measures such as the stock market and GDP were meant to act as proxies for measuring how well the economy was accomplishing its stated purpose, which is to improve the standard of living for everyone.
Understanding that these metrics are simply proxies has been lost today, and they’ve been turned into goals of themselves. People have started treating the stock market and GDP as the economy.
This is why we’re seeing an increasing disconnect between the economy that people are experiencing in their daily lives and news reporting on how the economy is doing.
And that’s why we see absurd articles like this one arguing that the recession people are experiencing isn’t real.
https://www.wsj.com/economy/it-wont-be-a-recession-it-will-just-feel-like-one-1919267a
I realize it wasn’t the main point of the post, so without getting too debatey I will clarify a little more before I leave it.
The idea of “an economy” as an external object attached to a society is peculiar to capitalism, for the fact of commodity fetishism, in which relations of production dominate over capitalist society as an external force. Only under these conditions does it make sense to treat an economy as a model that appears dispensable or interchangeable (but is not actually so).
Although societies have started out with consciously defined rules — and by rules I mean property relations — the aim of these rules has nothing to do with creating a stable society. The purpose of the rules is to define who retains privilege, who is oppressor and who is oppressed. Only after the rules are set does the task begin to make these rules practicable. This logical sequence is glossed over when talking of societies’ economic relations as external objects called economies.
I generally agree with that, and I think we need to be aware of what an economy represents and whose interests it serves. This is precisely the reason why we need a dictatorship of the proletariat to have an economy that’s intended to serve the people.