The Nobel factor — the prize in economics that spearheaded the neoliberal revolution — LARS P. SYLL

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, usually — incorrectly — referred to as the Nobel Prize in Economics, is an award for outstanding contributions to the field of economics. The Prize in Economics was established and endowed by Sweden’s central bank Sveriges Riksbank in 1968 on the occasion of […]

via The Nobel factor — the prize in economics that spearheaded the neoliberal revolution — LARS P. SYLL


One thought on “The Nobel factor — the prize in economics that spearheaded the neoliberal revolution — LARS P. SYLL

  1. The real problem with the economics Nobel
    Comment on Lars Syll on ‘The Nobel factor — the prize in economics that spearheaded the neoliberal revolution’

    Lars Syll argues that the economics Nobel is politically biased: “… the prize was thought to take advantage of the connection with the true Nobel prizes and spearhead a market-oriented neoliberal reshaping of the world.”

    This is a minor problem, the real problem is in the title: “Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel”.

    The key word is science[s]. Why not simply “Bank of Sweden Prize in Economics”? The original title clearly communicates the claim that economics is a science. This claim is as old as Adam Smith/Karl Marx.

    Science is well-defined by the criteria of formal and material consistency: “Research is in fact a continuous discussion of the consistency of theories: formal consistency insofar as the discussion relates to the logical cohesion of what is asserted in joint theories; material consistency insofar as the agreement of observations with theories is concerned.” (Klant, 1994)

    Neither orthodox nor heterodox economics satisfies the criteria of formal and material consistency. It is a provable fact that neither Walrasianism, nor Keynesianism, nor Marxianism, nor Austrianism is materially/formally consistent.

    Accordingly, economics is not a science but what Feynman famously called a cargo cult science.*

    The Bank of Sweden is legitimized to award prizes to whomever it wants and to push any political agenda it wants. The Bank, though, is NOT legitimized to declare economics as science well knowing that economics has not lived up to scientific standards since the founding fathers.

    The scientific community has to see to it, firstly, that the word ‘sciences’ is eliminated from the “Bank of Sweden Prize in Economic Sciences”. The general public has to be informed that the 200 year old claim and the actual state of economics do not match and that ALL economic policy guidance, i.e. independently of political orientation, lacks a sound scientific foundation. It follows, secondly, that economists have to be expelled from the scientific community. It follows, thirdly, that organizations like AEA, Royal Economic Society, Verein für Socialpolitik etcetera refrain from speaking in the name of science.

    The real problem with the Bank of Sweden Prize is that it may give rise to a claim for damages in the case of severe depression/unemployment which is ultimately caused by provable false economic theory.

    Egmont Kakarot-Handtke

    * See Wikipedia https://en.wikipedia.org/wiki/Cargo_cult_science

    Like

Comments are closed.