Economics as a propaganda device

17 Mar, 2020 at 16:52 | Posted in Economics | 1 Comment

diesThe most serious deficiency of implicit formal theories is that the verbal language disguises the abstractness of the theory … The consequence of the fallacy of misplaced concreteness is that the theory looks too convincing to its proponents​ … He becomes​ the prisoner of his own logical model and is rendered incapable​ of seeing reality from any other standpoint …

The most widespread example is provided by the neoclassical economists, such as Frank​ Knight, Ludwig von Mises, Henry Simons, and their present-day followers. These people seemed to think they had penetrated to the very essence of rational human action, and that they knew whatever was​ knowable about it … In other words, they believed that their abstract postulates​ were concrete​ descriptions of empirical reality … The followers of these economists, the Buchanans and McCord​ Wrights … are using their implicit​ formal theory as a propaganda device to support the present capitalist social order.

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  1. Huston: We have a problem … Can we really trust anything that emits from any professional economist? In the case of environment? There is a serious discrepancy between the reported emissions 2014-16 – the famous plateau – and the continuing growth och CO2 in the atmosphere. And now economists are giving advice concerning the fight against the corona-virus…
    Can humanity afford neoclassical economists?

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