Wednesday, November 2, 2016

181. Views that economists hold.

There are many divergent views that economist hold. Economics is a social science. Economists assist us in explaining and predicting as well as informing economic policy. If one takes a phenomenon such as “Unemployment” one will find economists with differing viewpoints having different views and make different predictions regarding the impact of a policy such as the imposition of a minimum wage. As a science it cannot follow the scientific method in the sense that one cannot conduct controlled experiments. There are however numerous “natural” experiments from which one can make certain deductions. By following a logical reasoning process many deductions can however be made – many of these have become “laws”, such as the law of demand that states that the quantity demanded will reduce as the price of a good increases (ceteris paribus). Mohr and Fourie (2004, p11) state in their textbook “Economics for South African students” why economists tend to disagree on certain important issues. This is what they say: • They might make different value judgements • They may not agree on the facts • They may be biased • The may hold different views on how the economy operates • They may have different time perspectives. I would suggest that you have a look at these and perhaps explore some of the differing viewpoints of say the “Austrian” and “Keynesian” approaches. I hope this helps.

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