Psychology and Economics

Over thousands of years, several businesses have desired the position of science. Few have prevailed because they did not find out anything that was standing up to analysis as information. No human body of values, no issue how commonly approved or how comprehensive in chance, can ever be scientific.

Jared Bernstein [right], with a Ph.D. in Social Welfare from Columbia University, is not officially an economist, but he has organized many roles that an economist would usually keep. He was chief economist and financial advisor to Vice President Joe Biden and a member of President Obama’s financial group. Before becoming a member of the Obama administration, he was a senior economist and the director of the Living Standards Program at the Economic Policy Institute. Between 1995 and 1996, he was the deputy chief economist at the U.S. Department of Labor.

psychologyBernstein is engaged in equation adjusting, a frequent practice among economic experts. For Bernstein, it’s income. But what has the formula to do with reality? Economic experts believe that their equations explain truth perfectly, but no design ever comes associated with evidence that it does. As Keynes outlined, “Too huge a percentage of latest ‘mathematical’ business economics are simple blends, as obscure as the preliminary presumptions they rest on, which allow the writer to forget the reasons and interdependencies of the actual life in a labyrinth of exaggerated and unhelpful signs.” As others have outlined, the map is not the area.

So why do economists claim these? Is it because these statements explain how they themselves would act if given the opportunity? Was Bastiat amazingly lazy? Was Cruz really a selfish man? If those who create such statements would not have served in the methods they described, would not they then know that the statements were false? These all are unprovable statements about individual (or canine) characteristics. Economics as we know it is nothing but statements about how humans will act in given conditions. As such, it is nothing but armchair psychology, and the psychology is in accordance with the emotional features of the economists creating the statements. Greedy individuals believe that all individuals are. Unethical individuals believe that all individuals are. Damaged individuals believe that all individuals are. Wicked individuals believe that all individuals are. But, you know, they are wrong! John Blossom, a lecturer of psychology at Yale, says.