Economics Becomes a Cyborg Science

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* Book: Philip Mirowski. Machine Dreams: Economics Becomes a Cyborg Science. Cambridge University Press, 2002



Edmund Berger:

"As the history traced in Philip Mirowski’s difficult – yet essential – Machine Dreams: Economics Becomes a Cyborg Science illustrates, the theories that became neoliberal capitalism were themselves honed in the military’s think-tanks alongside research into cybernetics, game theory, operations research and systems analysis, as well as the correlated evolutions in computer technology necessitated by the war effort and the demands of the rising Cold War. These trajectories broke upon unto the international stage in 1972, when the crisis of the dollar’s imminent devaluation led President Nixon (under the advice of Chicago School economist Milton Friedman) to remove the US currency from its gold standard, thereby undermining the worldwide monetary order and demolishing the international regulatory scheme arranged by the post-war Bretton Woods institutions. The result was the dizzying explosion of finance markets: without gold, global interest rates were no longer fixed, and became instead free-floating and flexible. Computerized marketplaces proliferated, opening spaces where futures contracts could be traded across a variety of international currencies. The rise of finance economies around these trading hubs played directly into the evaporating of industrial bases of the dominant world economies, and aided by dynamic modelizations and enhanced communication techniques made possibly information technologies, vast transnational supply chains cris-crossed the globe. No longer did corporations have to kowtow to the regulatory and taxation demands of the state and the costly worker protections of the unions – they now had the freedom to move anywhere in the world, seeking out the lowest possible costs for production. Under the reorganization of global economic systems through neoliberal governmentality and computerization, the largest narrative of them all – that of the state – was repurposed into something else, awash in the dizzying logistics of electronic flow and uneven planes of development." (