April 9, 2016

New age economics in 10 bullet points

Comment on Noah Smith on ‘A new age of econ imperialism is coming’


• Economics is a failed science. It consists actually of political and theoretical economics. Political economics is scientifically worthless.

• Psychology, sociology, behaviorism, political science, geopolitics, history, anthropology, evolutionary theory, institutionalism, law, ethics, philosophy are NOT economics. The valid results of these independent disciplines are taken into economics by way of multidisciplinary cooperation if needed.

• Economics is NOT about human nature/behavior/action but about the evolution of the economic system as a whole.

• Partial analysis is of extremely limited value and in most cases runs directly into the fallacy of composition. Microfoundation will therefore be replaced by macrofoundation.

• Systemic (= new) economics determines first of all the objective Profit Law because it is pivotal to all of economics. Who does not understand what profit is has no idea how the actual economy works.

• Walrasianism, Keynesianism, Marxianism, Austrianism — all four got profit wrong. These approaches are scientifically worthless.

• Economics has nothing to offer to other disciplines because it has produced not much, if anything, of scientific value since Adam Smith. The representative economist cannot even tell the essential difference between income and profit.

• The ongoing paradigm shift consists methodologically in the move from the behavioral axiomatic foundations of the four failed approaches to structural axiomatic foundations.

• People who have not realized in the old age that maximization-and-equilibrium is scientific garbage will not be admitted to the new age because of proven scientific incompetence.

• Scientific imperialism will put an end to economics as cargo cult science.

Egmont Kakarot-Handtke

Immediately preceding 'From mathiness to empiriness: forget it!'.