Has Economics Done Anything?

One of the blogs I read regularly is that called “Unlearning Economics”. I recommend it to you. A recent entry questions the efficacy of economic theory/thought. The challenge it issues is to come up with notable cases where economics has a definitive positive effect. The conclusion is that there are few. Certainly far fewer than justified by the vanity and fame of the leading practitioners of the art through the ages.

I leave it to you to come up with your own lists.

But the larger point is that we are even concerned with the results of all that activity. Isn’t it a shame that we can, with a straight face, discuss whether economics is worthwhile.

After all, as I have noted many times, there is an economist somewhere who will defend any position. Raise rates or lower rates? Is trade good, or is trade bad? Stimulus or austerity? Capitalism is great, capitalism is evil. And so on. There are very few moments when all economists agree. Perhaps none. And these disagreements are not nuances. They are substantive. Economists cannot even agree on the phenomena that economics is supposed to be about. There is little common core, little agreement, and precious little settled theory.

It basically seems to be: “The so-called law of supply and demand look like a pretty good idea”. The rest? “Well that’s your opinion”.

This is after a couple of centuries of thought. And plenty of tooting of intellectual horns.

It isn’t much.

No wonder outsiders find it all baffling. Most people come across economics as a single course at school. Or they read about it in the media. It is always presented as far more certain than it deserves to be. And those classes in classic micro are simply devoid of anything related to actual human behavior, yet are elevated to the status of stunning insight. No wonder our business flounder constantly under the weight of toxic decision making. And to think: they believe they’re being smart!

Anyway. It’s a mess. One day what we call economics today will be seen as horribly naive and primitive. Until then we need to take it all with a massive grain of salt.

The economy is hugely important to us all. It would be nice if economists had something to say about it. In unison.

Addendum:

I find it sad that the person writing the “Unlearning Economics” blog feels the need to be anonymous. He or she is an economist in training, and yet is too concerned that his or her opinions might upset the establishment so much that her or his career may be jeopardized. That’s beyond sad. It’s flat out wrong.