August 4, 2018

Economics: Math is NOT the problem, scientific incompetence is

Comment on David Ruccio on ‘Utopia and mathematics’

Blog-Reference

Economists fall into two groups, those who apply math and those who don’t. Both have failed. After 200+ years, economics is still at the proto-scientific level.

Fact is that economists have messed up
• profit theory, for 200+ years,
• microfoundations, for 150+ years,
• macrofoundations, for 80+ years,
• the application of elementary logic and mathematics since the founding fathers.

To this day, neither orthodox nor heterodox economists have developed the true (= materially/formally consistent) theory. More precisely, economists do not know how the price- and profit mechanism works and whether the monetary economy is inherently stable/unstable. The four main approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism ― are mutually contradictory, axiomatically false, materially/formally inconsistent, and all got the foundational concept of the subject matter ― profit ― wrong. What has been achieved is the pluralism of provably false theories.

Heterodoxy does not get tired of pointing out that Orthodoxy misapplies math. This, of course, is true. But this cannot obscure the fact that heterodox storytelling, too, has NOT achieved anything of scientific value.

The fact of the matter is that both orthodox and heterodox economists are too stupid to even understand the elementary mathematics that underlies National Accounting.#1, #2, #3 Because economists failed already at the first rung of the mathematical ladder they never could get out of their dark proto-scientific hole and beyond brain-dead political blather.

Both orthodox and heterodox economists are responsible for the worst embarrassment in the history of modern science and both have to be expelled from the sciences.#4, #5

Egmont Kakarot-Handtke


#1 Economists: just too stupid for counting
#2 For details of the big picture see cross-references Accounting and cross-references Math/Mathiness
#3 Hooray! The formalization issue is finally settled
#4 Lying for money: a generalization
#5 Throw them out! Orthodox and heterodox economists are unfit for science