Re: The Prize by Any Other Name

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Sven R Larson wrote:

> "Henry C.K. Liu" wrote:
> >
> > Barkley,
> >
> > Economics has more in common with theology than science.  Science requires
> > fidelity to reality, albeit the perception of reality is affected by scale and
> > perspective.  Nevertheless, science proceeds from observation to conclusion.
> > Theories of economics are mostly mental constructs while economics reality is
> > governed by political regimes that keep corresponding theories valid. When
> > theory conflicts with reality, economists can remain attached to their theories
> > by proclaiming reality to be at fault.
>
> This is a very a-historical statement. The scientific revolutions were
> thwarted for a long time by political interests who instead directed
> research such taht it would corroborate certain political ideas. Whether
> those politicians were kings or men of the church is ephemeral.
>

But political policy on science does not affect truth in science, only the
application of science in society.  In that respect, economics policy inevitably
assumes economics truth.

> > Thus a whole string of unnatural concepts such as the
> > natural rate of unemployment, the myth of scarcity,
>
> MYTH of scarcity?? I want a Corvette badly, but they won't give me one.
> How come if scarcity is a myth?
>

They don't give you one not because Corvettes are scarce, but that you value other
goods more.  The trade off is your decision.  There are many free commodities which
you also do not consume.  What is scarce is an instrument of exchange: money - a
totally artifical construct imposed on society.  Any system is totally capable of
producing all the Corvette consumers may want, provided ways are found to deliver
money, through income, to all.  The rationing of Corvettes is not a natural
phenomenom.  BTW, while you are demanding, why not a Ferrari ?

Henry C.K. Liu

>
> /srl
>
> --
> Sven R Larson
> Ph.D.; Assistant professor of economics
> Department of Social Sciences, 22.2
> Roskilde University
> PB 260
> DK-4000 Roskilde, Denmark
> http://www.ruc.dk/english/