Home > Uncategorized > What’s wrong with economics? Part 2: The realities of complex societies

What’s wrong with economics? Part 2: The realities of complex societies

With a Steady Hand

Is the economy complex or merely complicated?

The methodological approach of mainstream economists largely involves seeing an economy as either in a state of equilibrium or in a state of striving to reach an equilibrium. Economists analyse factors and chains of effect that enable an economy to adjust, moving from one equilibrium to the next. Their forecasts are predominantly based on the assumption that the chains of effect they have supposedly identified will continue in the same way.

This methodology is rooted in a scientific tradition, which can be called a so-called “modern view of the world” in the spirit of Max Weber. “This is typified by rationalization, which means … the knowledge or belief that if one but wished one could learn [a rational explanation] at any time [and] … one can, in principle, master all things by calculation” (Weber 1948:139). In principle, it is the assumption that…

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