Just how useless is modern economic theory

“The 1-2-3 Toolbox of Mainstream Economics: Promising Everything,
     Delivering Nothing”
   Bichler, Shimshon; Nitzan, Jonathan
  We write this essay for both lay readers and scientists, though mainstream
  economists are welcome to enjoy it too. Our subject is the basic toolbox of
  mainstream economics. The most important tools in this box are demand,
  supply and equilibrium. All mainstream economists – as well as many
  heterodox ones – use these tools, pretty much all the time. They are
  essential. Without them, the entire discipline collapses. But in our view,
  these are not scientific tools. Economists manipulate them on paper with
  impeccable success (at least in their own opinion). But the manipulations
  are entirely imaginary. Contrary to what economists tell us, demand, supply
  and equilibrium do not carry over to the actual world
: they cannot be
  empirically identified; they cannot be observed, directly or indirectly; and
  they certainly cannot be objectively measured. And this is a problem because
  science without objective empirical tools is hardly science at all.
   JEL: E13 C01 O47
   Keywords: demand,econometrics,equilibrium,neoclassical
   Date: 2021
 URL: http://d.repec.org/n?u=RePEc:zbw:capwps:202103&r=hpe

I made it a point in teaching micro to drill into my students that no price was ever determined according to where the supply and demand curves for a product were thought to be.

1 thought on “Just how useless is modern economic theory

  1. Pingback: Just how useless is modern economic theory - The Rabbit Hole

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