Thursday, January 15, 2015

Is Economics a Science?

I must confess that I'm not at all certain that the answer is "yes".  But many brains bigger than mine are, including an OLS hero, Don Boudreaux.  In his most recent article for the Pittsburgh Tribune-Review, he asks and answers this very question.  Here's a quote:
And so it is with economics. Economics is a systematic way of thinking that improves our understanding, if not our ability to make specific predictions. The economist understands, for example, that raising the minimum wage makes low-skilled workers less profitable for employers to hire. Therefore, concludes the economist, the higher the minimum wage, the fewer and worse are the employment opportunities open to low-skilled workers.

There's more to his argument, of course.  Click here to read the rest of this interesting article.