Saturday, May 19, 2018

Economics, Prescription, Description

The earliest 'Economics' is, as has been previously discussed, micro-Economics, with macro- first emerging with Smith's nationalization of the topic.  Now, a less recognized distinction, that transcends that one, is between descriptive Economics and prescriptive Economics.  For example, Wealth of Nations is prescriptive insofar as it recommends the implementation of Division of Labor, as is Communist Manifesto in its call for a revolution.  But, though its ulterior motive is prescriptive, Marx' Capital is descriptive, a status ignored by those who dismiss its analyses as Socialist propaganda, thereby willfully turning a blind eye to internal flaws in Capitalism.  Generally, contemporary Economics is descriptive, thus missing the prescriptive potential of a principle such as Equilibrium, as has been previously discussed.  But, it also sometimes confuses prescription and description, most notably when Smith's recommendation that one focus exclusively on self-interested motivation is taken for the assertion that all behavior is immutably self-interested, or when inducted patterns are characterized as 'natural'.  By suppressing the possibility of prescription in such cases, status quo de facto conditions are reinforced.

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