Need an Economics tutor?
Hire an Economics specialist to help you online.
Honest service. Affordable rates.
Contact us today about Economics tuition.
Economics is Not a Factual Science | Here's Why
Remember the financial crisis of 2008?
Nicknamed the Great Recession, economists and bankers were some of the most hated and criticised professionals in the world. Was it reasonable of the public to feel this way? In some ways, yes it was.
There were signs that economists had become overconfident. They thought only they could fully comprehend the complexities of economic theory. When people criticised economic theory as too simplistic, it was often taken with a pinch of salt.
As a matter of fact, about 95% of Economics is logical – it’s common sense really.
The basic principles of the subjects can be understood and appreciated by most people – just like when you go to a restaurant, you understand the concept that you want it to have a great food hygiene rating and you understand the importance of this.
Should a country gamble all of its money on risky investments? Doesn’t take a genius to work that one out.
Over the last few decades, it has been the neoclassical theory of Economics that has dominated our way of thinking. That is, reliance on the free markets to self-correct, and a reluctance to allow the government to intervene as much as humanly possible.
This belief assumes that economic agents are completely self interested: that we are shamelessly rational, only caring about our own welfare.
It has almost become accepted as 100% fact that human beings operate this way. People have begun to accept Economics almost as if it were a natural science, rather than a social science. The focus has thus shifted more towards theoretical modelling, without much focus and application to the real world..
As mentioned previously, Economics is a social science. It means that there are many potential theories, each one capable of being proven and being disproven.
It’s important to remember that Economics is a subject of debate, which is why we often discuss normative statements: statements which involve value judgements, so are very much down to personal opinion and the truth being neither black nor white.
Want to pass your Economics exams?
Hire a specialist economics tutor today. At mrbanks.co.uk, we supply online Economics tuition to support you through your exams.
Online tuition provides so many benefits.
Save money. Save time. Improve your grades.
Want to try before you buy? Contact us to book a trial lesson. You can see if online Economics tuition is right for you.
Contact us today and book a trial lesson with an online Economics tutor.