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IMO - The underpinning issue with the subject of Economics is that it's often misconstrued as a science. A science implies that what you are studying and testin

by mbesto 13y ago

IMO - The underpinning issue with the subject of Economics is that it's often misconstrued as a science. A science implies that what you are studying and testing is reproducible (i.e. the scientific method). However the issue with many of the theories of economics is they are subject to change. Let's say for example you state a theory that says "If X happens, Y will happen". Often in economics, once X happens to a certain point (let's say everyone catches on to the idea that X will always yield Y, so everyone simply goes and does it), Y may no longer happen at the same rate. So really the issue for me is - the people who make fiscal decisions are basing them on unproven (or let's say slightly proven) theories. It's better than nothing (which is the alternative), but still doesn't make it an absolute science.

jamesaguilar 13y ago
I don't think your understanding of the word science is universal. For example, I think it is perfectly scientific to study things that do not repeat very often, like the big bang or extinction events caused by large objects striking planets. When I say science, I just mean the gathering of knowledge through systematic, empirical means. I think that's what a lot of people mean by it. The problem with economics is that the empirical tools we have at our disposal are not very powerful, the data is noisy, and the factor-space is huge.
- mbesto 13y ago
  My point is the definition of science gets misconstrued. The general populous assumes that something that is scientific is a "truth". We often say "Big Bang Theory" not the "Big Bang Truth". In economics the line between truth and theory gets massively blurred (for reasons I'm not going to begin debating here). So when the Fed decides to drop the interest rates or a Harvard economics professor writes a report on how X will cause Y, we consider these to be absolutes. Meaning, if for every time X happens, there is a reactionary Y that needs to happen to keep growth consistent. We just believe because they've created an economy theory to support it, that is must be true.

by mbesto 13y ago

jamesaguilar 13y ago

I don't think your understanding of the word science is universal. For example, I think it is perfectly scientific to study things that do not repeat very often, like the big bang or extinction events caused by large objects striking planets. When I say science, I just mean the gathering of knowledge through systematic, empirical means. I think that's what a lot of people mean by it. The problem with economics is that the empirical tools we have at our disposal are not very powerful, the data is noisy, and the factor-space is huge.

mbesto 13y ago
My point is the definition of science gets misconstrued. The general populous assumes that something that is scientific is a "truth". We often say "Big Bang Theory" not the "Big Bang Truth". In economics the line between truth and theory gets massively blurred (for reasons I'm not going to begin debating here). So when the Fed decides to drop the interest rates or a Harvard economics professor writes a report on how X will cause Y, we consider these to be absolutes. Meaning, if for every time X happens, there is a reactionary Y that needs to happen to keep growth consistent. We just believe because they've created an economy theory to support it, that is must be true.