07 April 2008

The Economist Has No Clothes: Scientific American

The Economist Has No Clothes: Scientific American
The 19th-century creators of neoclassical economics—the theory that now serves as the basis for coordinating activities in the global market system—are credited with transforming their field into a scientific discipline. But what is not widely known is that these now legendary economists—William Stanley Jevons, L�on Walras, Maria Edgeworth and Vilfredo Pareto—developed their theories by adapting equations from 19th-century physics that eventually became obsolete. Unfortunately, it is clear that neoclassical economics has also become outdated. The theory is based on unscientific assumptions that are hindering the implementation of viable economic solutions for global warming and other menacing environmental problems.

OK, I'll be the first to admit that I'm not a fundi in either economics or physics. I suspect that the physics I learnt at school 50 years ago was based on the 19th century stuff, and quantum theory was strictly recreational reading that wouldn't help you to pass matric. So is there anybody who does know about this stuff who is able to confirm or refute this?

1 comment:

Matt Stone said...

I know physics some but not economics.


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