Steve Keen — The self-cannibalisation of economics

But as the 20th century closed, neoclassical economists were still exultant: they might be losing the academy, but they were winning everywhere else. The clearest statement of this triumphalism appeared in a1999 paper literally entitled “Economic Imperialism” by Ed Lazear, who later would become George W Bush’s chief economic adviser: "Economics is not only a social science, it is a genuine science. Like the physical sciences, economics uses a methodology that produces refutable implications and tests these implications using solid statistical techniques. In particular, economics stresses three factors that distinguish it from other social sciences. Economists use the construct of rational individuals who engage in maximizing behavior. Economic models adhere strictly to the importance of equilibrium as part of any theory. Finally, a focus on efficiency leads economists to ask questions that other social sciences ignore. These ingredients have allowed economics to invade intellectual territory that was previously deemed to be outside the discipline’s realm."

And then the economic crisis in 2007 upset the economic applecart.

Business Spectator (AU)
The self-cannibalisation of economics
Steve Keen