Can Economics be guided by science?

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SUMMARY

The forum discussion centers on the intersection of economics and science, particularly the role of government in guiding market forces to address long-term societal needs. Participants reference Adam Smith's concept of the 'invisible hand' and critique the market's inability to foresee negative externalities, such as climate change and resource depletion. The conversation emphasizes the necessity for informed decision-making in policy, advocating for enhanced public education in STEM fields to foster a more scientifically literate electorate capable of addressing pressing issues. Ultimately, the discussion concludes that without a consensus on human needs, effective guidance from science in economic policy remains elusive.

PREREQUISITES
  • Understanding of Adam Smith's 'invisible hand' concept in economics
  • Familiarity with climate change and its economic implications
  • Knowledge of the relationship between government policy and scientific research funding
  • Awareness of the role of public opinion in democratic decision-making
NEXT STEPS
  • Research the impact of government-funded scientific research on economic policy
  • Explore the relationship between public education in STEM and societal decision-making
  • Investigate case studies on the effectiveness of market regulation in addressing externalities
  • Examine the role of social sciences in defining human needs and guiding policy
USEFUL FOR

Economists, policymakers, environmental scientists, and educators seeking to understand the interplay between market forces, scientific guidance, and long-term societal outcomes.

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  • #32
In regards to quotes. I remember some famous physicist asked if he would be interested in the field of economics.

His reply was something to the matter that there were too many variables for anything meaningful to be said about, in the field.
 
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  • #33
The basic problem I see with the premise is that economics is inextricably linked to things like politics, philosophy, etc. which can't be quantified. Science is about what can be observed and empirically recorded. Take for example the current tax reform legislation (not offering an opinion on it either way just using it as an example). The primary criticism is that it's unfair to low- and middle-income earners and disproportionately favors the wealthy. How do you scientifically determine "fair" and "favor"? You can present numerical arguments for both sides. The closest you could come to a scientific model would be to base it on efficiency, which would probably end up looking like basic Darwinism ("survival of the fittest"). The moment you begin taking things like civil rights into account you've crossed over from science to philosophy. Not that that's a bad thing; our embracing of metaphysics like philosophy is what sets us apart from the rest of the animal kingdom.
 

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