Importance Of Economy As Positive Science

Importance of economy as positive science

Introduction

It is important to define the scientific principles of the economy since, in a certain case, it has more and more importance in our lives. Without taking into account the fact that they can be far from our knowledge, such as those taken by companies or by the public, and even without being totally aware, many of the decisions we make throughout the day are the object of the economic study,When studying, for example, the decisions we make when making the purchase, how much we can save, how much money reserve for our vacations, etc. Thus, the basis of the economy not only teaches the great decisions that indicate the path of a society, but also help guide people daily to people, and, inevitably, both paths will cross at some point. 

Now, these decisions influence cultural, ethical, religious, etc. We can, then, consider the economy as a positive science when its object of study does not focus only on empirical macroeconomic data, especially when the economy, unlike the sciences they experience, can find clear demonstrations through controlled experiments inHis laboratories must wait for the passage of time to administer the certainty necessary to contrast the corresponding theories.

Developing

The first issue that we must take into account before defining the economy as a positive science is if it is at least one science.

The fundamental pillar of completely formed sciences is the existence of criteria and rules of verification of theories that allow to subject with total security that this or that theory has been demonstrated as false.

The problem is to affirm that the economy can act with the same security.

An economist uses mathematical models, with its equations, derivatives or functions, to look for a specific variable. These variables refer to economic issues, such as the amount of hours that a person or the savings rate of a country works, and the method used to reach them is almost equal to what we use to calculate, for example, savingsof energy. These economic models are also placed on important principles, such as the rationality of the human being, which values all possible options to achieve their objective, and uses those that have a lower cost;or the utility improvement, which indicates that this objective will be the one with the greatest personal satisfaction;and like the law of gravity, it is considered that they must be fulfilled in any phenomenon to study.

On the other hand, the method used for predictions and verification of theories, economy, tries to offer objectives manufacturing mathematical models, even tries to omit some theories so as not to alter the results. Moreover, in most important economic magazines work is ruled out that are not based on a quantitative analysis, for not being considered scientific.

However, we must bear in mind that the objects of study of economic theories are different from those of natural sciences. These do not exist as such outside the researcher, but it is this, as one more individual from society, who analyzes them and shapes them based on their own values. Moreover, objects can change as a result of the investigation, for example, an atom does not change its structure because a theory or another is established on it, but the prediction of economic expectations or others can cause different consequences that change the course of the course ofthe facts. It must be taken into account that an economic system does not develop apart from society, although there are external causes that modify the economy, such as energy or resources available. In conclusion, economic phenomena are so complex that they cannot be observed with precision, even more so in times of insecurity where society changes rapidly. Because of this, the economy offers models that develop under very specific situations and, often, false, such as considering markets in "perfect competition". 

Being clear that the objects of study of economic theories are framed within the social sciences, and based on the study of human behavior in the relationship between objects and scarce means, who defend that the economy is a science is based onthree criteria that, without a doubt, this science unites. Has a research method. Has an object of study. The results of the investigations are apt of expressing themselves scientifically in the form of laws or general principles

One of the debates that are repeated around the economy is related to the positive or normative nature. The discussion begins by deciding whether the economy relies on natural events, independent of our tastes, opinions or beliefs or, on the contrary, it relies on our value judgments. This issue to solve is important because from it a methodological position arises, like this: 

The economy is a hypothetical -deductive science and its treatment must follow the designs of natural sciences, such as physics, chemistry or biology.

The economy must be maintained in the environment of the regulations due to the support it receives from the value judgments that accompany us. 

The discussion begins with David Hume, who, in his work treated on human nature, established a difference between two categories: being and duty to be. That is, among the facts we observe in nature and the value judgments that we announce.

Another aspect of debate is that many thinkers try to establish similarities between social and scientific disciplines. Karl Popper, introduced the concept of falsification to examine scientific disciplines. Popper claimed that the repeated success of a theory could not include its veracity. However, with a single time that a fact does not match the prediction of the theory is enough to catalog it as false. Terence Hutchison introduced this methodological criterion in his work significance and basic postulates of economic theory (1938).

Another defender of economic positivism was John Maynard Keynes, who claimed that positive sciences are the ideas to take into account when designing economic policies;implying that being can imply duty to be.

Milton Friedman also accepts the positive character of economic discipline and lifts it above natural sciences under the difficulty they entail. Friedman goes much further than Keynes when, in Essays on Positive Economics (1953), where he states that social scientists have data with physical sciences, since the scientist is part of the object of study. 

Finally, the main current indicates that the direct evidence of the principles or assumptions of economic theory is unnecessary and superficial;The economic examples must be judged by their intervention regarding the phenomena they intend to explain. The empirical review will show, if certain models are true or false, and will show whether or not those are applicable to a situation. This is how the popperian idea of the refutation is passed and a statistical approach to the verification is presented, which accepts that neither the copy nor the confirmation can never be definitive.

conclusion

Consider the economy, at least all of it, as a positive science, is a mistake. Not only because it is departed from the social sciences, whose object of study shares without a doubt, but because the different disciplines that these sciences imply are offended;as if you could only choose between the mathematical economy or economic literature;as if only mathematician had value.

There is no doubt that precise mathematics is of the utmost importance to establish economic models or theories, they should not become the only epistemological marker of the economy, since, in that case, the complication of social facts will be forgotten, andWithout these, the human being is eliminated from the equation. What utility would the economy then have?

That in economics it is impossible to achieve accuracy in your studies does not take value, since this science is a fundamental tool to understand the current social order, and its true objective should be to become a guide to deal with the transformation of oursociety.

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