Author Joris Luyendijk: Economics Is Not a Science (theguardian.com)

The Real Dr John writes: A Nobel prize in economics, awarded this year to Angus Deaton, implies that the human world operates much like the physical world: that it can be described and understood in neutral terms, and that it lends itself to modeling, like chemical reactions or the movement of the stars. It creates the impression that economists are not in the business of constructing inherently imperfect theories, but of discovering timeless truths. In 1994 economists Myron Scholes and Robert Merton, with their work on derivatives, seemed to have hit on a formula that yielded a safe but lucrative trading strategy. In 1997 they were awarded the Nobel prize in economics. A year later, Long-Term Capital Management lost $4.6bn (£3bn) in less than four months; a bailout was required to avert the threat to the global financial system.

Comments

It should be obvious

[The Real Dr John]

Economics is not a science. It is a study of human behavior like Psychology, and as the article points out, it has heavy political overtones. There was no Nobel Prize in Economics until 1969. Maybe it is time to retire that particular prize.

It's a fuzzy science

[JustAnotherOldGuy]

It's a fuzzy science, similar to cooking.

Sometimes you try stuff, make predictions, and it turns out great.

Sometimes you try stuff, make predictions, and it's dreadful. Like my famous "Peanut Butter & Haggis" recipe, or pickle-flavored ice cream.

Re:It's not even a real Nobel Prize

[xpiotr]

As Dilbert so gently points out http://dilbert.com/strip/2015-...