Fred Lee on ‘non-knowledge’ mainstream economics

28 Jan, 2022 at 16:38 | Posted in Economics | 1 Comment

In memoriam: Frederic S. Lee (1949-2014), el adiós a un “economista  blasfemo”[*] | LumpenproletariatThe methodological underpinning of neoclassical microeconomics is open to criticisms. The methodological approach of neoclassical economics is based on a pre-vision of supply and demand and/or a Walrasian general equilibrium all combined with scarcity and constrained maximization. Accepting this vision as a matter of faith, neoclassical economists construct axiomatic-based arguments via a deductivist methodology (with or without the use of mathematics) to articulate this pre-vision. There is no attempt to establish that the pre-vision has any connection to or is grounded in the actual capitalist economy it purports to explain. Hence the method of constructing theory is not tied to or informed by the real world, which means that the axioms qua assumptions used are not chosen because of their realism or some other way grounded in reality but solely because they contribute to articulating the pre-vision. Therefore with a methodology unconcerned with the real world, the theories derived therefrom​ are theoretically vacuous and hence not really explanations. They are in fact non-knowledge. Consequently,​ the methodology of neoclassical economics is not just wrong, it is also misleading in that it cannot inherently provide any understanding of how the real works or even predict outcomes in the real world.

Fred Lee

Fred was together with Nai Pew Ong, Bob Pollin and Axel Leijonhufvud one of those who made a visit to University of California such a great experience for a young economics scholarship holder back at​ the beginning of the 1980s. Yours truly especially remember our long and intense discussions on Sraffa and Neo-Ricardianism. It is now more than seven years since Fred passed away. I truly miss this open-minded and good-hearted heterodox economist.

1 Comment

  1. Very much hits the nail on the head for me.

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