by Economics — science succumbed to universalist temptations All social sciences, to a greater or lesser degree, start with a yearning for a universal language, into which they can fit such particulars as suit their view of things. Their model of knowledge thus aspires to the precision and generality of the natural sciences. Once we understand human behavior in terms of some universal and – crucially – ahistorical principle, we can aspire to control (and of course improve) it. No social science has succumbed to this temptation more than economics. Its favored universal language is mathematics. Its models of human behavior are built not on close observation, but on hypotheses that, if not quite plucked from the air, are unconsciously plucked from economists’
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Economics — science succumbed to universalist temptations
All social sciences, to a greater or lesser degree, start with a yearning for a universal language, into which they can fit such particulars as suit their view of things. Their model of knowledge thus aspires to the precision and generality of the natural sciences. Once we understand human behavior in terms of some universal and – crucially – ahistorical principle, we can aspire to control (and of course improve) it.
No social science has succumbed to this temptation more than economics. Its favored universal language is mathematics. Its models of human behavior are built not on close observation, but on hypotheses that, if not quite plucked from the air, are unconsciously plucked from economists’ intellectual and political environments. These then form the premises of logical reasoning of the type, “All sheep are white, therefore the next sheep I meet will be white.” In economics: “All humans are rational utility maximizers. Therefore, in any situation, they will act in such a way as to maximize their utility.” This method gives economics a unique predictive power, especially as the utilities can all be expressed and manipulated quantitatively. It makes economics, in Paul Samuelson’s words, the “queen of the social sciences.”
In principle, economists don’t deny the need to test their conclusions. At this point, history, one might have thought, would be particularly useful. Is it really the case that all sheep are white, in every place and clime? But most economists disdain the “evidence” of history, regarding it as little better than anecdotage. They approach history by one route: econometrics. At best, the past is a field for statistical inquiry.
The economist Robert Solow offers a devastating critique of the identification of economic history with econometrics, or “history blind” as he calls it:
“The best and brightest in the profession proceed as if economics is the physics of society. There is a single universally valid model. It only needs to be applied. You could drop a modern economist from a time machine … at any time, in any place, along with his or her personal computer; he or she could set up in business without even bothering to ask what time and which place.”