With your example of "pineapples and coconuts," I am reminded of Smith’s idea in The Wealth of Nations, where trade and specialization generate collective prosperity. However, it is true that this idea has been "perverted" by prioritizing money over well-being, something Smith did not explicitly foresee in his work since he assumed we would pursue our self-interest within "a moral framework"—something that is indeed very distorted nowadays because money becomes an end in itself...
You also mention the topic of well-being, measuring it in terms of money, which is truly something very complex and multi-causal, because factors like social relationships or mental health, for example, are not always "purchasable" directly with money. Furthermore, if we take into account Jevons’ own theory of marginal utility, well-being increases with income up to a certain point, but beyond that, the impact of money on emotional happiness diminishes...
You have written a very good article, with ideas and analyses that truly provide excellent material for debate. Thank you!
Yes, it isn't purchasable, but if the business economy was geared toward wellbeing, the conditions of society would align to cater for the other factors. The "money" part of it has an impact on the rest of it too. Just like money is only good up to a point, not enough money will have negative impacts on the parts of life that can't be bought also.
The monetary economy doesn't live in a vacuum, it interacts with all other parts of our lives also.
I totally agree, which is why economics is not an exact science, but a social one.
The complexity of human relationships often surpasses the rational 'cause' of economics.
That's why I mentioned that it's a very complex topic that lends itself to much debate...
Humanity is a complex system and the rules of economics that we are able to apply, are not suitable for a dynamic environment. Much of the economics we use today never envisaged the conditions of today - with multinational mega corps that generate trillions, but produce nothing tangible.
I wonder what a "perfect" system would look like.
I really can't imagine a perfect system because it's not in our nature; it would be utopian...