Re: Economic Science [Was: Re: The Widow's Cruse

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Bill:

Now that you are expressing strong views on the epistemological aspects of
economics, please explain how these relate to my summary of the Humean
position on the subject matter which I posted to PKT a couple of days ago.

Specifically, why do you think Keynes divorced THOUGHT - as in "way of
thinking" - from LOGIC - as in "a branch of logic"?

My summary follows:

The concept of Economics as Science mirrors the classical (Humean) concept
of "knowledge" - in a working paper from the 1980s, I summarized it as
follows:

1.  All knowledge is axiomatic.

2.  Hence, knowledge relates to a state of mind.

3.  A state of mind is either clear or confused, coherent or incoherent,
logical or illogical.

4.  A claim to knowledge is a claim to a clear, coherent, and logical state
of mind.

5.  Hence, a claim to knowledge is distinct from a claim to opinion, whose
validity is beyond any conceivable refutation on grounds of clarity,
coherence, and logic.

6.  A claim to knowledge derives from the perception that one's mind is
clear, coherent, and logical in holding such claim to be beyond dispute by
any other mind equally clear, coherent, and logical.

7.  Hence, a claim to knowledge can only be refuted by minds satisfying the
requirements of clarity, coherence, and logic.

8.  A claim to axiomatic knowledge is a claim to a state of mind marked by
clarity, coherence, and logic in its grasp of propositions beyond relative
time and space.

9.  The art of economics addresses policy issues within relative time and
space in light of the axiomatic propositions of economic science itself.

The above concept of knowledge accords perfectly with the definition offered
in 1922 by Keynes [my working paper continued]:

"The Theory of Economics does not furnish a body of settled conclusions
immediately applicable to a policy.  It is a method rather than a doctrine,
an apparatus of the mind, a technique of thinking, which helps its possessor
to draw correct conclusions."

Gunnar



----- Original Message -----
From: "William B. Ryan" <william_b_ryan@xxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Cc: <gunnar.tomasson@xxxxxxxxxxx>; <rosserjb@xxxxxxx>
Sent: Friday, October 10, 2003 12:19 PM
Subject: Re: Economic Science [Was: Re: The Widow's Cruse


> Gunnar, I've archived at
> http://www.geocities.com/new_economics/keynes-1938.txt
> Keynes' 1938 letter where he says that economics is a
> "branch of logic" by which he means "way of
> thinking."  Now, that statement from Keynes is
> something quite different than saying that economics
> is a branch of *formal* logic flowing from a given
> set of axioms.  That's why we always have to look at
> the contexts from which specific statements are
> plucked that are used to make a case.  Keeping it in
> isolation has allowed you to put a completely
> different spin on it than Keynes intended, over the
> last three years or so you have been pushing this
> line to the readers of this list.
>
> You've gone so far as saying it doesn't matter what
> axioms you start with--certainly that is my
> impression from your responses to my various
> challenges--because they are "self-evident," that
> everything that we need to know about economics may
> be concluded by applying the "rules of logic" to that
> given set of axioms through the "method of analysis."
> I am curious as to how you differentiate your
> specific approach from that which the "Austrians"
> like Mises (Schumpeter is in the Austrian tradition)
> call *parxeology*.  I must say the Austrians have
> several e-lists that might be more amenable to you
> than the list we are now on.  What Keynes says below
> would appear to bring empiricism into play, something
> that is abhorrent to praxeologists--and yourself.
>
> From Keynes' letter:
>
> ***|But one cannot get very far except by devising
> new and improved models. This requires, as you say,
> 'a vigilant observation of the actual working of our
> system'.  Progress in economics consists almost
> entirely in a progressive improvement in the choice
> of models...Economics is a science of thinking in
> terms of models joined to the art of choosing models
> which are relevant to the contemporary world.|***
>
> What do you say to this?  Surely you will admit this
> does put a different "spin" on the matter, right?
>
> Bill
>
>
>
>
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