American Prestige Bonus - Is Economics a Science? w/ Erik Baker
Aug 17, 2025
Dive into a thought-provoking discussion about the legitimacy of economics as a science. Hear about the struggles of early 20th-century economists aiming for formalization and the critique of relying too heavily on expert paradigms. The conversation touches on the tension between quantification and complex realities. Shifts towards nuclear history reveal intriguing insights too. It’s a blend of economics, history, and the philosophical questions about how we understand societal management.
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Economics Emerged To Manage Industrial Society
- Economics formed alongside industrialization as a tool to manage a complex political economy.
- Early figures like Weber and Marx blurred lines between economics and sociology as the field institutionalized.
Quantification Turn Created The 'Economy' Object
- The 20th century pushed economics toward heavy quantification, formalization, and mathematical modeling.
- This shift reframed the economy as a macro object measurable by aggregates like unemployment and aggregate demand.
Formal Models Seen As Tools For Control
- Critics like Mises and Hayek saw formalization as enabling rational control and planning of the economy.
- They feared mathematization would empower technocratic manipulation rather than genuine understanding.