The New Kind of Science Forum: Economics Thread -2

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

[Reformat of original message]


Gunnar Tomasson introduced us to Stephen
Wolfram's NKS forum -- economics threads.
The philosopy of science and economics is
being discussed.
       http://forum.wolframscience.com
I posted this message in that forum.
                         -- John Gelles



Economics: Common sense and formal science

I see political economy as common sense economics
based on stated objectives, such as, mimicking "one-man,
one vote" to try to achieve "one man, one income
(above the poverty line)".

The objective might include, relative to gargantuan
individual income, avoidance of an income ceiling but
use of a restriction in law that prevented people (and
firms) from "buying the law".

This view of "political economy" is within the positivist
realm of my view of "economic science".

Economic science, on the other hand, can only embody
a very general objective of seeking to understand and
maybe model human economies we observe from time
to time and place to place.

Thus economics as a formal science approaches
human economies and insect economies with the same
tools and non-judgmental attitude.

Because data expressed in material measure
(excluding price) can be used in economic science
-- especially in logistics -- I believe such formal study
can be useful.

Because price data is distorted and unnatural, its use
in economic science distorts all modeling and tends
to accept and give license to much that is unfair and
unnatural.

Price data can, however, be very satisfactory for use
in political economy (common sense economics).

Admittedly, we are not ready to wholly replace market
prices with computed prices; but we are ready, I believe,
to augment bank created money with debt-free managed
money to reach economic objectives such as defense
of freedom, full employment, protection of the
environment, renewable energy, universal health care,
reduced conflict, etc.

Prices that would flow from such augmentation of
our money (to allow government to spend it into
circulation) would be useful in gathering feedback
and generally managing a national economy to reach
its objectives.

A series of well managed national economies might
mprove the global economy.

    John Gelles