The Challenge of Economics

This essay argues that contemporary economics is constrained by a theoretical framework that systematically obscures dynamic, interdependent, and long-run processes. Central to this limitation is the neglect of planning horizons—the bounded, evolving scope of agents’ foresight and knowledge—which are implicitly treated as fixed in neoclassical theory. By assuming ubiquitous substitution, decreasing returns, and equilibrium determinacy, mainstream economics misrepresents the fundamentally complementary, path-dependent, and organizational nature of economic activity. Revisiting long-standing debates over increasing returns, uncertainty, interdependence, and knowledge, the paper critiques key orthodox assumptions, including the methodological defense of unrealistic premises and the evasion of time, learning, and institutional structure. It proposes a horizonal framework in which planning horizons shape prices, incentives, organizational forms, and the balance between competition and cooperation. In this view, horizon effects are socially contagious, altering economic relations from conflict toward complementarity as foresight expands. The essay concludes that many persistent economic, educational, and institutional failures stem from applying competitive models to inherently complementary systems. A reorientation toward horizonal economics is therefore essential for understanding growth, coordination, learning, and social welfare in complex, evolving economies.