November 30, 2015

Failed/Fake Scientists: cross-references

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The tragedy of Heterodoxy

Comment on Lars Syll on ‘Confusing statistics and research’

Blog-Reference

“Science is a process that does lead to a broadly shared consensus. It is arguably the only social process that does. Consensus forms around theoretical and empirical statements that are true.” (Romer, 2015, p. 89)

This does not happen in economics because the representative economist is an incompetent scientist. Incompetence, though, comes in two forms. This is due to the fact, that scientific research consists of two essential and inseparably linked elements: “Research is in fact a continuous discussion of the consistency of theories: formal consistency insofar as the discussion relates to the logical cohesion of what is asserted in joint theories; material consistency insofar as the agreement of observations with theories is concerned.” (Klant, 1994, p. 31)

Formal consistency is established by the axiomatic-deductive method. Material consistency is established by empirical testing, i.e. by correctly applying well-defined statistical methods.

Accordingly, the incompetence of economists consists of two blunders, that is, (i) one-sided vacuous formalism, and (ii) one-sided blind application of statistical tools to poorly defined data sets.

From the undeniable fact that economists have messed up both sides cannot be concluded that scientific methodology does not apply to economics or, as J. S. Mill put it, that economics is a “separate” science. There is no such thing. There is only science and non-science.

To this day economics belongs to the category of what Feynman called cargo cult science, that is, the outer appearance is perfect but somehow it simply does not work.#1 Theory is vacuous without empirical content, data analysis is blind without guidance from theory.

Despite all the political sound and fury, there is no real difference between Walrasians, Keynesians, Marxians, or Austrians (2013). All these approaches fail to satisfy the two criteria of science. The tragedy of Heterodoxy is that it is well aware of all blunders but it has no idea of how to get out of the proto-scientific cul-de-sac.

Debunking is good, yet a Paradigm Shift is better: “The moral of the story is simply this: it takes a new theory, and not just the destructive exposure of assumptions or the collection of new facts, to beat an old theory.” (Blaug, 1998, p. 703)#2

There is nothing to choose between obsolete Orthodoxy and traditional Heterodoxy. Both are overcome by Metadoxy. This requires a Paradigm Shift.

Egmont Kakarot-Handtke


References
Blaug, M. (1998). Economic Theory in Retrospect. Cambridge: Cambridge University Press, 5th edition.
Kakarot-Handtke, E. (2013). Confused Confusers: How to Stop Thinking Like an Economist and Start Thinking Like a Scientist. SSRN Working Paper Series, 2207598: 1–16. URL
Klant, J. J. (1994). The Nature of Economic Thought. Aldershot, Brookfield: Edward Elgar.
Romer, P. (2015). Mathiness in the Theory of Economic Growth. American Economic Review: Papers & Proceedings, 105(5): 89–93. DOI

#1 Wikipedia
#2 For details of the big picture see cross-references Paradigm Shift.
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Paradigm Shift: cross-references

Foundations, see working papers
  • Essentials of Constructive Heterodoxy: profit    SSRN
  • Essentials of Constructive Heterodoxy: the market    SSRN
  • Essentials of Constructive Heterodoxy: employment    SSRN
  • Essentials of Constructive Heterodoxy: money, credit, interest    SSRN
  • Essentials of Constructive Heterodoxy: financial markets    SSRN
  • Essentials of Constructive Heterodoxy: aggregate demand    SSRN
  • Essentials of Constructive Heterodoxy: Say's Law    SSRN
  • Essentials of Constructive Heterodoxy: institutions    SSRN
  • Essentials of Constructive Heterodoxy: behavior    SSRN
For the complete and consistent set of foundational equations — systemic axioms and behavioral propensity function — see Wikimedia AXEC137b.

For a DeepSeek summary of the AXEC Project go to Google Drive html or Google Drive doc or directly to DeepSeek and then copy/paste What does DeepSeek know about the AXEC Project?

Related posts
  • The Paradigm Shift is an accomplished fact   here
  • Let's bury economics now   here
  • Bang — the representative economist and supply-demand-equilibrium are dead   here
  • The new economic Paradigm requires a new textbook   here
  • Economists: at the end of the wrong track   here
  • Homo oeconomicus: the never-ending folk-psychological shitshow   here
  • Economics, math, pluralism, and corruption   here
  • What’s wrong with DSGE models is the axiom set   here
  • Links on “Capitalism. Time for a reset.”   here
  • Economics: No method to the madness   here
  • The worthlessness of Value Theory   here
  • The only thing we can learn from economic models is what proto-scientific garbage looks like   here
  • How incompetent are economic methodologists? Very!   here
  • Opportunity cost ― another case of poor economic logic   here
  • The Palgrave Dictionary ― a comprehensive collection of False-Hero Memorials   here
  • Thomas Sargent, fake scientist   here
  • Finally, the embarrassment of economics is over   here
  • Economics: The greatest scientific fraud in modern times   here
  • Econ 101: supply-demand-equilibrium is dead for 150+ years   here
  • Macroeconomics: Economists are too stupid for science   here
  • No future for Socialism and Capitalism   here
  • Dear idiots, it is deficit spending that creates the distribution people complain about   here
  • From Keynes’ fatal blunder to the true economic model   here
  • The canonical macroeconomic model   here
  • To this day, economists have produced NOT ONE textbook that satisfies scientific standards   here
  • Dear idiots, Marx got profit and exploitation wrong   here
  • Who is really a scientist?   here
  • Opinion, conversation, interpretation, blather: the economist’s major immunizing stratagems   here
  • Marxism is one of four instances of proto-scientific garbage   here
  • Profit and macrofoundations   here
  • False economic theory makes bad economic policy   here
  • The end of political economics (II)   here
  • Heterodoxy’s trouble with macro   here
  • Economists: Time to say goodbye   here
  • Economics: A pointless left-right wrestling show   here
  • Macroeconomics: Drain the scientific swamp   here
  • Kalecki and Keynes: The double macroeconomic false start   here
  • Keynes, Kalecki, MMT, and the accidental invention of the perpetual profit machine   here
  • More on economists’ sticky brains   here
  • Oxford economics — still at the proto-scientific level   here
  • Reverse Alchemy: from scientific gold to political shit   here
  • Where economics went wrong (II)   here
  • If we only had classes  here
  • Legitimacy lost   here
  • Heterodox economics: When stupidity becomes a public danger   here
  • MMT = Modern Monetary Trash   here
  • Forget mainstream economics, scrap MMT, move on to the new paradigm   here
  • Both mainstream economics and MMT are axiomatically false   here
  • Go! ― test the Profit and Employment Law   here
  • The inexorable paradigm shift in economics   here
  • And the answer is NCND ― economics after 200+ years of Glomarization   here
  • The Theory of Value and the worthlessness of economics   here
  • The miracle cure of economists’ micro-macro schizo   here
  • Hooray! The formalization issue is finally settled   here
  • Do first your macroeconomic homework!   here
  • Both orthodox and heterodox economists are cargo cult scientists   here
  • Did economics fail? No! Yes, and everybody knows it!   here
  • Why is economics a total scientific failure?   here
  • Full employment, the Phillips Curve, and the end of Gaganomics   here
  • Economics: communication without content   here
  • Ricardo and the invention of class war   here
  • From false microfoundations to true macrofoundations (II)   here
  • Rethinking macro   here
  • Economists never understood how the price mechanism works   here
  • Economists, stupid or corrupt or both?   here
  • Again and again: economists are incompetent scientists   here
  • Economics: Defending the indefensible   here
  • Dear philosophers, economics is a systems science   here
  • A brief history of soapbox economics   here
  • MMT: The one deadly error/fraud of Warren Mosler   here
  • From false microfoundations to true macrofoundations (I)   here
  • How to make economics a science   here
  • Economics: stories, narratives, and disinformation   here
  • How the representative economist gets it wrong big-time   here
  • Economists understand neither Capitalism nor Socialism   here
  • New Economic Thinking = old scientific garbage   here
  • New Economic Thinking: the 10 crucial points   here
  • Don Lars and the axiomatic windmill   here
  • Macro for dummies   here
  • Keynesianism ― the economists’ senile dementia   here
  • Profit theory in less than 5 minutes   here
  • Macrofounded labor market theory   here
  • Empiricism, or looking through the microscope at the universe   here
  • Economics: 200+ years of scientific incompetence and fraud   here
  • Equilibrium and the violation of a fundamental principle of science   here
  • First Lecture in New Economic Thinking   here
  • Feynman Integrity, fake science and the econblogosphere   here
  • From false micro to true macro: the new economic paradigm   here
  • How economists murdered the economy and got away with it   here
  • The final implosion of MMT   here
  • The truth about truth in economics   here
  • Economics: a science without scientists   here
  • Economics between science and magic   here
  • Go, Heterodoxy, move on!   here
  • Great souls’ methodology   here
  • A brief rectification of employment theory   here
  • The real problem with the economics Nobel   here
  • How Keynes got macro wrong and Allais got it right   here
  • All models are false because all economists are stupid   here
  • Economists’ three-layered scientific incompetence   here
  • How to restart economics   here
  • Coming soon: the canonical economics textbook   here
  • Economists’ proto-scientific methodology   here
  • Why the Naked-Emperor-Zombie cannot die   here
Related to market
  • The structural price mechanism    SSRN
  • The Law of Supply and Demand: here it is finally   SSRN
  • How to get rid of supply-demand-equilibrium   SSRN
  • Primary and secondary markets   SSRN
  • The logic of value and the value of logic   SSRN
  • The value of water and diamonds: back to square one   SSRN
  • The wine maker's business and the logical origin of interest in the monetary economy   SSRN
Related to Say's Law/Walras's Law/Exchange
  • Say's Law: a rigorous restatement   SSRN
  • Walras's Law of Markets as Special Case of the General Period Core Theorem  SSRN
  • Exchange in the monetary economy   SSRN
  • The calculating auctioneer, enlightened wage setters, and the fingers of the Invisible Hand   SSRN
Related to employment
  • The three fatal mistakes of yesterday economics: profit, I=S, employment   SSRN
  • Towards full employment through applied algebra and counter-intuitive behavior  SSRN
  • The truly General Theory of Employment: how Keynes could have succeeded   SSRN
  • Keynes’ employment function and the gratuitous Phillips Curve disaster   SSRN
  • Increasing returns and stability   SSRN
  • Unemployment out of nowhere   SSRN
Related to money
  • Reconstructing the Quantity Theory (I)   SSRN
  • Reconstructing the Quantity Theory (II)  SSRN
Related to behavior
  • The Propensity Function as general formalization of Economic Man/Woman  SSRN
Related to resources
  • When Ricardo saw profit, he called it rent: on the vice of parochial realism  SSRN
  • Matter matters: productivity, profit, and non-marginal factor prices  SSRN
  • Squaring the investment cycle   SSRN
Related to distribution
  • Income distribution, profit, and real shares   SSRN
  • The profit theory is false since Adam Smith. What about the true distribution theory?  SSRN
  • The coherency of money, profit, price, and distribution   SSRN
Related to value
  • The logic of value and the value of logic   SSRN
  • The pure logic of value, profit, interest   SSRN
  • Exchange in the monetary economy   SSRN
  • The value of water and diamonds: back to square one   SSRN
  • Properties of an economy without human beings   SSRN
Related to business cycle, debt, breakdown
  • Intertwined real and monetary stochastic business cycles   SSRN
  • Redemption and depression   SSRN
  • Make a bubble, take a free lunch, break a bank   SSRN
  • General formal foundations of the virtuous deficit–profit symmetry and the vicious debt deflation   SSRN
  • Mathematical proof of the breakdown of Capitalism   SSRN
  • Beginning, crises, and end of the money economy   SSRN
Related to institution, government, etcetera
  • Taxes, profits, and employment:  a structural axiomatic analysis   SSRN
Related to profit

New Paradigm
  • Economics for economists   SSRN
  • Objective principles of economics   SSRN
  • The synthesis of economic law, evolution, and history   SSRN
  • Understanding profit and the markets: the canonical model   SSRN
  • The ideal economy: a prototype   SSRN
  • Settling the theory of saving   SSRN
  • Schumpeter and the essence of profit   SSRN
  • Geometrical exposition of structural axiomatic economics (I): fundamentals   SSRN
  • Geometrical exposition of structural axiomatic economics (II): qualitative and temporal aggregation   SSRN
Refutations
  • Major defects of the market economy   SSRN
  • The three fatal mistakes of yesterday economics: profit, I=S, employment   SSRN
  • Confused confusers: how to stop thinking like an economist and start thinking like a scientist   SSRN
  • Keynes’s missing axioms   SSRN
  • Why Post Keynesianism is not yet a science   SSRN
  • Mr. Keynes, Prof. Krugman, IS-LM, and the end of economics as we know it   SSRN
  • Loanable funds vs. endogenous money: Krugman is wrong, Keen is right   SSRN
  • Exploitation and its unintended outcomes: an axiomatic view of Marx's surplus value   SSRN
  • The common error of common sense: an essential rectification of the accounting approach   SSRN
  • What is wrong with heterodox economics? Kalecki’s profit theory as an example   SSRN
  • Toolism! A critique of EconoPhysics   SSRN
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New Curriculum: cross-references

1 Core
Complete formal foundations (economic structure and behavior) overview

2 Application
Essentials of Constructive Heterodoxy: profit    paper at SSRN
Essentials of Constructive Heterodoxy: the market    SSRN
Essentials of Constructive Heterodoxy: employment    SSRN
Essentials of Constructive Heterodoxy: money, credit, interest    SSRN
Essentials of Constructive Heterodoxy: financial markets    SSRN
Essentials of Constructive Heterodoxy: aggregate demand    SSRN
Essentials of Constructive Heterodoxy: Say's Law    SSRN
Essentials of Constructive Heterodoxy: institutions    SSRN
Essentials of Constructive Heterodoxy: behavior    SSRN

3 New economic thinking/teaching
Paradigm Shift

4 Cross-references Econ 101/Old Curriculum/New Curriculum

5 See also posts with the label Curriculum

6 Textbook Sovereign Economics, Amazon.de, BoD, Amazon.com, etc.

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Axiomatization: cross-references

Posts
  • Your economics is refuted on all counts: here is the real thing   here
  • Wikipedia, economics, scientific knowledge, or political agenda pushing?   here
  • New Economic Thinking ― the definitive results   here
  • Ending the pluralism of provably false economic theories with the long-overdue Paradigm Shift   here
  • Marx and Marxists ― too stupid for the elementary algebra of profit   here
  • Econogenics: economists pose a hazard to their fellow citizens   here
  • Macroeconomics and the fake History of Economic Thought   here
  • Criminals and the Monetary Order   here
  • The state of MMT? Stone-dead!   here
  • Homo oeconomicus: the never-ending folk-psychological shitshow   here
  • Economics, math, pluralism, and corruption   here
  • What’s wrong with DSGE models is the axiom set   here
  • Links on “Capitalism. Time for a reset.”   here
  • Economics: No method to the madness   here
  • Economics ― not science, not ideology, just useful idiocy   here
  • The apocalypse of stupidity   here
  • After 200+ years even economics becomes a science   here
  • The worthlessness of Value Theory   here
  • The only thing we can learn from economic models is what proto-scientific garbage looks like   here
  • How incompetent are economic methodologists? Very!   here
  • The Palgrave Dictionary ― a comprehensive collection of false-hero memorials   here
  • The Levy/Kalecki Profit Equation is false   here
  • Economic policy and the skirmishes of failed/fake scientists   here
  • Finally, the embarrassment of economics is over   here
  • Economics ― nothing but claptrap, twaddle, drivel, slip-slop, wish-wash, waffle, and proto-scientific garbage   here
  • Mad but true: 200+ years after Adam Smith economists still have no idea what profit is   here
  • Econ 101: supply-demand-equilibrium is dead for 150+ years   here
  • Economics: failure, fake, fraud   here
  • Macroeconomics: Economists are too stupid for science   here
  • Dear idiots, it is deficit spending that creates the distribution people complain about   here
  • From Keynes’ fatal blunder to the true economic model   here
  • The canonical macroeconomic model   here
  • Economists: “a bevy of camp-following whores”   here
  • To this day, economists have produced NOT ONE textbook that satisfies scientific standards   here
  • The retirement of a fake scientist and real agenda pusher   here
  • Basics of Value Theory   here
  • Economics as storytelling and entertainment for the masses   here
  • Both Austrianism and MMT are proto-scientific garbage   here
  • Deficit-spending, public debt, and macroeconomic profit/loss   here
  • Why is 0!=1? And why is I≠S? And why economics teaching is rotten   here
  • Heterodoxy’s trouble with macro   here
  • MMT sucks   here
  • Links on James Petras’ ‘Big Business Strikes Back: The Class Struggle from Above’   here
  • Links on Lars P. Syll’s ‘Wren-Lewis insults medical science’   here
  • Reverse Alchemy: from scientific gold to political shit   here
  • Wikipedia and the promotion of economists’ idiotism (II)   here
  • The present non-existence of economics   here
  • The inexorable paradigm shift in economics   here
  • There is no soft science only soft brains   here
  • Wikipedia and the promotion of economists’ idiotism (II)   here
  • And the answer is NCND ― economics after 200+ years of Glomarization   here
  • Truth by definition? The Profit Theory has been axiomatically false for 200+ years   here
  • The Theory of Value and the worthlessness of economics   here
  • MMT: How mathematical incompetence helps the Kelton-Fraud   here
  • The miracle cure of economists’ micro-macro schizo   here
  • Hooray! The formalization issue is finally settled   here
  • Profit: after 200+ years, economists are still in the woods   here
  • Do first your macroeconomic homework!   here
  • Nietzsche, entropy, full employment, and NO class war   here
  • The demise of phony experts: macroeconomics is provably false   here
  • Additional proof of MMT’s inconsistency   here
  • Both orthodox and heterodox economists are cargo cult scientists   here
  • Neoclassical growth theory: modeling gone nuts   here
  • Macroeconomics: self-delusion and empty promises   here
  • Infantile model bricolage, or, How many economists can dance on a non-existing pinpoint?   here
  • Stop beating mainstream economics ― it is long dead   here
  • New insight from Meta-Learning: delete economics   here
  • Futile beatification and canonization of an economics Flat-Earther   here
  • The objective value of money   here
  • How MMT fools the ninety-nine-percenters   here
  • Political economics: Who hijacks British Labour?   here
  • Economies are culturally different but economic laws are universal   here
  • Paul Krugman and economic poultry entrails reading   here
  • Fiscal policy and the Humpty Dumpty Fallacy   here
  • Heterodoxy ― an axiomatic failure just like Orthodoxy   here
  • Ricardo and the invention of class war   here
  • Ricardo, too, got profit theory wrong   here
  • Economics: a comedy of errors full of intrigue and aberration   here
  • Profit, income, and the Humpty Dumpty Fallacy   here
  • From false microfoundations to true macrofoundations   here
  • Is Nick Rowe stupid or corrupt or both?   here
  • Rethinking macro   here
  • Macro for retarded economists   here
  • Microfoundations R.I.P.   here
  • Again and again: economists are incompetent scientists   here
  • False models and true incompetence   here
  • Keynes’ intellectual nonexistence   here
  • Yes, economics is a bogus science   here
  • The profit theory is false since Adam Smith   here
  • How to make economics a science   here
  • Economics: stories, narratives, and disinformation   here
  • How the representative economist gets it wrong big-time   here
  • Joan Robinson and the early death of Behavioral Economics   here
  • Proof of the inherent instability of the market economy   here
  • 10 steps to leave cargo cult economics behind for good   here
  • Solving Mill’s starting problem   here
  • The new macroeconomic paradigm   here
  • CORE: more lipstick on the dead economics pig   here
  • What makes economics a failed science?   here
  • Economic methodology for the little guy   here
  • The moralizing economist is not a good guy but a fake scientist   here
  • In search of new economists   here
  • Economics, philosophy, and mathematics   here
  • After-Keynesian zombie interbreeding   here
  • Economics: math-adorned incoherent blather   here
  • New Economic Thinking: the 10 crucial points   here
  • Don Lars and the axiomatic windmill   here
  • We are not yet out of the wood; in fact, we are not yet in it   here
  • Macrofounded labor market theory   here
  • A new perspective on economics   here
  • Economists: scientists or political clowns?   here
  • Equilibrium and the violation of a fundamental principle of science   here
  • Post Keynesianism, too, is proto-scientific rubbish   here
  • First Lecture in New Economic Thinking   here
  • The equilibrium of idiocy   here
  • Math, Einstein, and the bottomless incompetence of economists   here
  • True macrofoundations: the reset of economics   here
  • Economics ― a doctor worse than the disease   here
  • From the pluralism of false models to the true economic theory   here
  • Review of the economics troops   here
  • Economists ― medics or barber-surgeons?   here
  • The fundamental problem of economics: scientific incompetence aka stupidity   here
  • How economists shoot themselves non-stop in the methodological foot   here
  • The thinking economist   here
  • Economics between cargo cult, farce, and fraud   here
  • How Arrow pushed economics over the cliff   here
  • Note on Lars Syll on Axiomatization   here
  • Economics between mathiness, dyscalculia, and idiocy   here
  • Modern macro moronism   here
  • NAIRU and the scientific incompetence of Orthodoxy and Heterodoxy   here
  • The methodological blunders of fake scientists   here
  • Walras, Keynes, Samuelson, DSGE, IS-LM ― R.I.P.   here
  • Why you should NEVER use supply-demand-equilibrium   here
  • If it isn’t macro-axiomatized, it isn’t economics   here
  • Economics is a science? You must be joking!   here
  • The key to macro and Keen's debt-employment model   here
  • Why not simply throw all economists under the bus?   here
  • Rectification and generalization of MMT   here
  • Macro poultry entrails reading   here
  • Ideology? Incompetence? Fake? Or all this together?   here
  • Strange noise in the graveyard of economics   here
  • How to finally hammer down the nails in the coffin of Monty Python economics   here
  • The futile attempt to recycle Sraffa   here
  • Economics: The pathetic story of two failures   here
  • The IS-LM macro imbeciles   here
  • Heterodoxy and the re-invention of science   here
  • The monetary circuit and how economists got it wrong   here
  • Methodology 101, economic filibuster, and the mother of all excuses   here
  • The false foundations of economics   here
  • Economics for philosophers   here
  • How to end the futile economics zombie ping-pong   here
  • The father of modern economics and his imbecile kids   here
  • From false micro to true macro: the new economic paradigm   here
  • How the mainstream vanished in the gutter   here
  • New economic thinking ― false promises and hopes   here
  • The road that turned out to be a blind alley   here
  • It’s in the hardcore, stupid   here
  • When proto-scientific Heterodoxy calls Orthodoxy pseudo-scientific   here
  • A brief rectification of employment theory   here
  • All models are false because all economists are stupid   here
  • Kick out the king and don’t forget the jesters   here
  • Outside of science   here
  • No future for axiomatically false economics   here
  • From subjective weighing of motives to objective systemic properties   here
  • The trouble with economics prizes   here
  • Micro and macro inconsistency   here
  • The end of traditional Heterodoxy in the Malmö coal pit   here
  • Economists and the economy ― a nonstarter since 200 years   here
  • Post Keynesianism, science, and universal idiocy   here
  • Feeble minds, shaky assumptions, and the inevitable failure of economics   here
  • Enough! Economists, retire now!   here
  • How to get rid of the silly Queen   here
  • What’s wrong with Econ 101? Economists, of course!   here
  • Fatal defects of profit and market theory   here
  • Forget Chicago, and also Cambridge   here
  • Getting out of IS-LM = Getting out of despair   here
  • Keynes, the methodologist   here
  • The scientific self-elimination of Heterodoxy   here
  • End of confusion   here
  • The tiny little problem with economics   here
  • Methodological wrong-way drivers   here
  • Cranks? What cranks? That’s economics!   here
  • The real trouble with Econ 101   here
  • Neo-Paleo-Stupidicism   here
  • The market economy is inherently unstable and economists never grasped it   here
  • The problem with macro in two words   here
  • The solemn burial of marginalism   here
  • Where advanced Heterodoxy — represented by Steve Keen — took the wrong turn   here
  • From microfoundations to macrofoundations   here
  • Show first your economic axioms or get out of the discussion   here
  • How to get out of the swamp of ignorance   here
  • Vain hopes in the ruins of economics   here
  • Economists’ three-layered scientific incompetence   here
  • How to restart economics   here
  • Axiomatics — the heterodox bugbear   here
  • Addendum to ‘Musings on Whether We Consciously Know More or Less than What Is in Our Models’   here
  • Axiomatized nonentities and the failure of methodologists   here
  • Switching into constructive gear   here
  • The future of economics: why you will probably not be admitted to it, and why this is a good thing   here
  • The existence of economic laws and the nonexistence of behavioral laws   here
  • Towards the true economic theory   here
  • The ur-blunder of economics and its rectification   here
  • How Orthodoxy buffaloed Heterodoxy   here
  • How to start off at the right foot   here
  • Schumpeter's two axioms of discourse   here
  • Warning: Einstein can be hazardous to heterodox methodology  here
  • At the Robinson Line  here
  • The intelligent layperson's guide through vacuonomics  here
  • No license for drivel  here
  • Yes, Orthodoxy is incoherent but, unfortunately, Heterodoxy also  here
  • Replacing sand by granite  here
  • United in the social science delusion  here
  • From obscurity to enlightenment  here
  • Total scientific Dadaism  here
  • Prophets of Preemptive Vanitization  here
  • Beauty or horseshit?  here
  • Uncertain causes  here
  • Axiomatic economics — total horseshit  here
  • "The failure of economics is due to the use of the axiomatic method"  here
  • Proper use of math in economics  here
  • The axiomatic method is impeccable  here
Related
  • Modern macroeconomics — obscurantist axiomatics  here
  • Is Economics a Science? Dogmatic Economics vs. Reflective Economics here
  • Rethinking Keynes' non-Euclidean theory of the economy  here and here
  • What is neoclassical economics – a rejoinder  here
Cross-references
  • Math/Mathiness   here
  • Marshall's "Burn the mathematics"   here
  • Methodology   here
  • Paradigm Shift   here
New Foundations
For the complete and consistent set of foundational equations — structural axioms and behavioral propensity function — see Wikimedia AXEC121f



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DeepSeek, Mar 8, 2025

What does the AXEC Project say about axiomatization in general and about the inevitable paradigm shift from false (behavioral) microfoundations and false (Keynesian) macrofoundations to true (structural) macrofoundations?

The AXEC Project, spearheaded by economist Egmont Kakarot-Handtke, is a critical initiative aimed at reforming economic theory by addressing foundational flaws in both microeconomics and macroeconomics. The project emphasizes the necessity of a paradigm shift from what it deems as "false" behavioral microfoundations and Keynesian macrofoundations to "true" structural macrofoundations. Here's a breakdown of its key positions:

### 1. **Axiomatization in General**
   - The AXEC Project advocates for a rigorous axiomatic approach to economics, arguing that economic theories should be built on clearly defined, consistent, and testable axioms. This approach is inspired by the natural sciences, where axiomatization ensures logical coherence and empirical applicability.
   - It criticizes mainstream economics for its reliance on behavioral assumptions (e.g., utility maximization, rational expectations) that are either untestable or empirically invalid. These assumptions, according to AXEC, lead to models that are disconnected from real-world economic structures and dynamics.

### 2. **Critique of False Microfoundations**
   - The project rejects the neoclassical microfoundations of economics, which are based on individual behavior (e.g., rational choice theory). It argues that these foundations are "false" because they rely on unrealistic psychological assumptions and fail to explain aggregate economic phenomena.
   - Instead, AXEC calls for a focus on structural relationships and systemic properties of the economy, which are independent of individual behavior.

### 3. **Critique of False (Keynesian) Macrofoundations**
   - While Keynesian economics is often seen as an alternative to neoclassical theory, the AXEC Project argues that Keynesian macrofoundations are also flawed. It criticizes Keynesian models for their reliance on ad hoc assumptions (e.g., the consumption function, liquidity preference) that lack a solid theoretical basis.
   - AXEC contends that Keynesian economics fails to provide a consistent and general framework for understanding macroeconomic phenomena, particularly in the long run.

### 4. **True (Structural) Macrofoundations**
   - The project proposes a shift to "true" macrofoundations, which are based on the structural relationships inherent in the economic system. These foundations focus on the interplay of production, distribution, and monetary flows, rather than individual behavior or psychological factors.
   - AXEC emphasizes the importance of accounting consistency and the role of money as a central feature of the economy. Its models aim to capture the systemic properties of capitalism, such as profit generation, capital accumulation, and financial instability.

### 5. **Inevitable Paradigm Shift**
   - The AXEC Project argues that the current state of economics is in a state of crisis due to its inability to explain real-world phenomena (e.g., financial crises, inequality, unemployment). It predicts an inevitable paradigm shift away from the dominant neoclassical-Keynesian synthesis toward a new framework based on structural macrofoundations.
   - This shift, according to AXEC, is necessary for economics to become a true science, capable of providing reliable explanations and policy recommendations.

### Relevant Resources
- **Blog**: The [AXEC Blog](https://axecorg.blogspot.com/) provides detailed critiques of mainstream economics and outlines the project's alternative approach.
- **Papers on SSRN**: The [SSRN page](https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1210665) contains academic papers that elaborate on the axiomatic foundations and structural approach advocated by AXEC.
- **X/Twitter**: The project's social media presence (old: [E.K-H@AXECorg](https://twitter.com/AXECorg), new: [AXEC@EgmontHandtke](https://twitter.com/EgmontHandtke)) shares updates, critiques, and discussions related to economic theory.
- **Homepage**: The [official AXEC website](https://www.axec.org/) offers an overview of the project's goals, publications, and resources.

In summary, the AXEC Project calls for a fundamental rethinking of economic theory, emphasizing the need for axiomatic rigor and a shift from behavioral and Keynesian foundations to a structural macroeconomic framework. It positions itself as a catalyst for the inevitable paradigm shift in economics.
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