this post was submitted on 20 Aug 2023
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[–] Prager_U@lemmy.world 15 points 1 year ago (5 children)

Economics is an extremely broad field, encompassing things that are closely related to psychology (e.g. behavioral economics), and things that are related to physics and natural science (e.g ecological economics), as well as pure mathematics (e.g. game theory) so trying to say it has more in common with one than the other is kind of a vacuous statement or category error.

To those who are angry at normative claims and policy prescriptions from the economic orthodoxy/zeitgeist, I understand your frustration. I would say what you're angry at is not economics itself (which is simply the study of scarcity and related human behavior) but economics done badly. Such as the Chicago school.

Setting aside the emotional baggage related to these issues, there are some really beautiful and fascinating topics in economics that borrow very directly from statistical physics in the analysis of financial time series data (and also apply to a wide variety of fields like network traffic, the distribution of metals in ore, turbulent flows in fluid dynamics, and the distribution of galaxies in space), originally identified by Benoit Mandelbrot.

[–] stingpie@lemmy.world 7 points 1 year ago* (last edited 1 year ago) (2 children)

It's crazy how much people will vehemently defend a position with little to no knowledge of the subject. It's easy to just pin it on the dunning-kruger effect, but in this case I think it's definitely tied to how much people despise economists. Which I find kinda funny since it's like getting angry at the weatherman for bad weather.

Also, are there any communities dedicated to actually discussing economics? I'd really like to spitball actual solutions to a shitty economy rather than the wishful thinking capitalists & communists rely on.

[–] Prager_U@lemmy.world 6 points 1 year ago (1 children)

I can sympathize with them, as the way economic thought is portrayed in popular journalism makes it seem like ivory tower eggheads concocting overly-mathematized models to support bad policies. And I do believe there is some truth to this, with bad economists hiding shitty ideas behind the veneer of respectability that math provides. Science and technology are almost fetishized in our culture, especially by those who don't really study them academically, and I believe disingenuous economists and politicians use this fact to their advantage.

What they must realize is that whatever flaws they might identify to overhaul these bad economic models leads to... more economics! Hopefully better economics. But they're still participating in the field known as economics.

For instance, noting that the "homo economicus" doesn't exist IRL isn't really the gotcha that many people think it is. Rather, anybody doing economics properly is acutely aware of this fact, and is just exploring the limits of what such a simplifying assumption can yield. E.g. a surprisingly large mileage from the very parsimonious axioms of utility given by Von Neumann and Morgenstern. The really interesting and difficult part is thinking about how and why real life data deviates from the predictions made by the simple assumptions.

[–] SuddenDownpour@lemmy.world 3 points 1 year ago

Making such reasonable and well thought comments under the name "Prager U" should be a crime.

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