Lars P. Syll — Interpreting economic theory

Predictions from economic theory are not nearly as accurate as those offered by the natural sciences, and the link between economic theory and practical problems … is tenuous at best. — Ariel Rubenstein.

Economics is neither a natural science or like a natural science. It is a social science that is also heavily influenced by life science and psychology. The subject matter of natural science and social science are so different that different methodological approaches need to be applied. Moreover, social science is much more affected by hidden assumptions and implicit presumptions than natural science. In addition, it is difficult to eliminate value judgement and cognitive-affective bias in social science. Social science is therefore much more a mixture of philosophy and science than science, especially macroeconomics, which doubles as a policy science.

Heterodox economists, mathematicians (like Keynes), economic sociologists, and economic anthropologist have been pointing this out for well over a century, Karl Marx, who emphasized the historicity of economics, being a good example.

That is is still a subject of serious concern is amazing. Conventional economists are barking up the wrong tree and refuse to recognize it. They are in a state of denial, which is a psychological abnormality. They need treatment before they kill us all with their quack prescriptions.

Lars P. Syll’s Blog
Interpreting economic theory
Lars P. Syll | Professor, Malmo University

See also

Real-World Economics Review Blog
The drunk looking for the key

Yoshinori Shiozawa