RE: 'Debunking Economics' - Ch. 12

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

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From: "Gunnar Tomasson" <tomasson@xxxxxxxx>
To: "POST KEYNESIAN THOUGHT" <pkt@xxxxxxxxxxxxxxxx>
Subject: 'Debunking Economics' - Ch. 12
Date: Wed, May 24, 2000, 12:39 pm


>Steve:
>
>I just got around to reading Ch. 12 and pass on the following for your
consideration.
>
>GENERAL COMMENT
>
>If we judge the 'General Theory' by the standard which Keynes applied to
Say's "doctrine", namely, >its suitability "for purposes of scientific
prediction" (p. 132), then it should have been declared >DOA back in 1936 on
purely epistemological grounds.
>
>Briefly, by ascribing causal relationships between its variables, Keynes
disregarded the >epistemological essence of ALL Scientific Models of
empirical reality, which David Hume summarized >with respect to that of
Newtonian Orbital Mechanics etc. as follows:
>
>"While Newton seemed to draw off the veil from some of the mysteries of
nature, he shewed at the >same time the imperfections of the mechanical
philosophy; and thereby restored her ultimate secrets >fo that obscurity in
which they ever did and ever will remain."
<snip>

For purposes of making predictions what else can one do but ascribe causal
relationships between variables? We must risk being mechanically
presumptive in order to make predictions. When our predictions turn
out to be wrong we must revise our theories if we *care* about
making accurate predictions.

Harry Veeder