The New Kind of Science Forum: Economics Thread

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

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. -- 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 improve the global economy.