Re: The Problem with Economics (was: Re: LVT: a discussion with a center/left economist)

<royls@xxxxxxxxx> wrote in message
news:43887a73.11533954@xxxxxxxxxxxxxxxxxxxxxxxx
> On 25 Nov 2005 18:19:00 -0800, "lev_lafayette@xxxxxxxxxxxx"
> <lev_lafayette@xxxxxxxxxxxx> wrote:
>
>>Michael Scheltgen wrote:
>>
>>> royls@xxxxxxxxx wrote:
>>>
>>> > The point is, physicists went about trying to create mathematics in
>>> > order to make sense of empirical data. The economists are doing it
>>> > backwards, assuming the mathematics and then trying to find empirical
>>> > data to support it (and largely failing).
>>>
>>> That's par for the course in academic economics these days: have
>>> model, will travel.
>>>
>>> Donald (and Deirdre) McCloskey has written some excellent stuff
>>> in this area.
>>
>>Very good points by both of you...
>>
>>It would be interesting to "rewrite" economics from an empirical
>>perspective. Personally, I've always used the axioms of market
>>economics as things with practical intent i.e., "in order for a person
>>to be a rational economic actor the following are requisite; etc ...."
>>
>>Most neoclassical economists assume that the axioms are already in
>>place and away they go. IIRC Rothbard makes some quite loopy comments
>>about economics being an a priori science.
>
> That's the Austrian influence. They state explicitly that their
> assumptions are not falsifiable by any empirical data!

I gave up on economics and went to Political Economy in
wikipedia. It is much, much better but it suffers some
current problems (evolving one would hope). For instance
I found this silly stuff in the page on "Political Economy":
"
Exchange
>From the view of political economy, exchange is the process where the producers
of commodities or investment exchange with consumers. Each producer is also a
consumer, and each consumer is also a producer. The market provides a mechanism
for exchange, and money provides a medium of exchange. Consequently, the
dynamics of monetary exchange are a central focus of much of political economy.

The infrastructure of exchange determines the range of market possibilities.
Political economy views the long term goal of economic activity as the
successive creation of political capital sufficient to manage the range of
monetary exchange required by the society. In simple terms, money is a commodity
which a society produces, and in order to function, the money it produces must
be capable of sustaining the market which the society uses. Adam Smith
enumerates early in The Wealth of Nations a list of requirements for the
functioning of a market, which include stability of exchange and expected rates
of profit in various enterprises.

I fixed it as best I could, but someone will probably put it
back the way it was. You might have a look at this page
anf you will probably want to join in on the changes.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org


.

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