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That’s the only scientific part about it but afaik it still only applies to micro not macroeconomics. To quote Charlie Munger: “it economics is not behavioural
by sprafa 7y ago
That’s the only scientific part about it but afaik it still only applies to micro not macroeconomics.
To quote Charlie Munger: “it economics is not behavioural, what the hell is it?”
- TheOtherHobbes 7y agoPolitics. Economics is persuasion. It's about some people telling other people how they should act "because". It's not descriptive or empirical, and never has been. The more honest economists will tell you it's considered part of moral philosophy.
- arethuza 7y agoI can recommend the book "Licence to be Bad: How Economics Corrupted Us" by Jonathan Aldred - it makes a pretty strong case that the way economics has influenced politics over the last few decades has had a pretty strong negative impact on society: https://www.goodreads.com/book/show/43267091-licence-to-be-bad https://www.goodreads.com/book/show/43267091-licence-to-be-b...
- Nasrudith 7y agoMoral philosophy is a part of it and how it is often used but not all of it. It is possible to be objectively incorrect and it becomes rapidly apparent. Use fixed universal prices regardless of location and you /will/ have problems. The Soviets tried unsuccessfully to do a value calculation for their existence. Economics points out for instance that stopping smuggling without offering an alternative serves as a subsidy for the successful smugglers. Doing the math to point out that say a deflationary currency would eventually become worthless as a currency is likewise objective.