These have been difficult times for the world. Bear Stearns went broke and had to be bailed out by the government, who sold it to JPMorgan Chase; Washington Mutual also ended up seized by the government, its clients transferred to Chase; Citigroup bought Wachovia; Bank of America bought Merrill Lynch; Morgan Stanley and Goldman Sachs had to become bank holding companies (retail banking, how terrible!) to survive; Lehman Brothers went bankrupt and is being sold, piece by piece, to, well, everyone else around; then Hurricane Gustav and the general exciting times we live in drag AIG down, and it also has to be bailed out by Uncle Sam; then the British go to the rescue of Bradford and Bingley, and Belgium/Nederlands/Luxembourg give a friendly loan to Fortis. Oh, and did I mention emerging markets stock trading and currency exchange rates?All of this makes for some cool evidence of an imminent momentous event in world history, huh? Some might think I am talking about the Obama-McCain standoff in November, but what if there is something else even more momentous beyond that? And, if this something will not happen anytime soon, what would be the problem of investigating it and being prepared for it when it happens?
This is why I propose the creation of a new branch of economic science, namely Eschatoeconomics. The term, as my erudite readers can easily see, comes from the Greek ἔσχατος, eschatos meaning "last," and οἰκονομία, oikonomia meaning "management of a household." In other words, eschatoeconomics would be concerned with the study of the end of the world from a purely economic point of view. It would ask questions such as "at the time of the Second Coming of Christ, how are stocks expected to perform?" "Should governments create institutions to protect customers in case of a bank run upon Armaggeddon, a sort of FDIC especially set up to keep the economic system running when all dead resurrect?" "And, as for the dead, how will they affect the economy? Will they impose a burden on the labor market, or will they flood tourist destinations and provide a much-needed boom to the world economy?" "If immense doom befalls the entire world, how will the insurance companies pay for all of it? Does the clause on 'acts of God,' included in every insurance policy, apply to house windows broken by the sound of the trumpet announcing the arrival of Christ? It is not God playing the trumpet, after all, it is some archangel or such..."
We understand that the only people that ever cared, from a purely scholarly point of view, about the end of the world are religious and philosophical scholars, but it is about time this changed. For the sake of everyone's IRAs, 401(k)s and retirement plans worldwide, economists have to start thinking about the future. And the future lies in Eschatoeconomics.











