No one here has acknowledged the difference between classical economics and neoclassical economics (or even the difference with post-keynesian economics). Classical economics makes descriptions and predictions that can be falsified.
It also takes into account social context by understanding the social forces that come into play in a society at a given point. For example, the profit motive is understood as a historical force reinforced by capitalism itself.
All of this is modeled in a stochastic manner, which reflects both the variation in human behavior and the strong tendencies in human behavior. Once again, these models are testable.
All of this contrasts with the idealized and unscientific notion of economics that was cooked up at the end of the 18th century: neoclassical economics. This is what is taught to most people.
Neoclassical economics doesn’t seek to describe the forces that motivate human beings as much as assume that people are utility maximizers. Therefore, social context is explained reductively. Predictions are harder, because what leads the way isn’t evidence, but assumptions. Of course, there’s a political component to not show capitalism as a historical reality as much as both a reflection of universal truths of human nature and a desirable social arrangement.
It’s sad to confirm that neoclassical economics has dominated the economics departments and school curricula of the world. However, many scholars fortunate enough to be given a stable job despite not believing in the contemporary doctrine are doing amazing work. For example, Shaikh.
With this in mind, classical economics has to resemble physics to the extent that physics describes stochastic processes. In fact, Shaikh explicitly recognizes that pressure as a measure is a stochastic measure because, even though you can’t predict the trajectory of a single atom, you can predict how many atoms will interact on an aggregate level. The same happens with humans.
No one here has acknowledged the difference between classical economics and neoclassical economics (or even the difference with post-keynesian economics). Classical economics makes descriptions and predictions that can be falsified.
It also takes into account social context by understanding the social forces that come into play in a society at a given point. For example, the profit motive is understood as a historical force reinforced by capitalism itself.
All of this is modeled in a stochastic manner, which reflects both the variation in human behavior and the strong tendencies in human behavior. Once again, these models are testable.
All of this contrasts with the idealized and unscientific notion of economics that was cooked up at the end of the 18th century: neoclassical economics. This is what is taught to most people.
Neoclassical economics doesn’t seek to describe the forces that motivate human beings as much as assume that people are utility maximizers. Therefore, social context is explained reductively. Predictions are harder, because what leads the way isn’t evidence, but assumptions. Of course, there’s a political component to not show capitalism as a historical reality as much as both a reflection of universal truths of human nature and a desirable social arrangement.
It’s sad to confirm that neoclassical economics has dominated the economics departments and school curricula of the world. However, many scholars fortunate enough to be given a stable job despite not believing in the contemporary doctrine are doing amazing work. For example, Shaikh.
With this in mind, classical economics has to resemble physics to the extent that physics describes stochastic processes. In fact, Shaikh explicitly recognizes that pressure as a measure is a stochastic measure because, even though you can’t predict the trajectory of a single atom, you can predict how many atoms will interact on an aggregate level. The same happens with humans.