In Heilbroner's book The Worldy Philosophers he ends his book with the chapter called "The End of Worldly Philosophy" and in this chapter he elaborates on the idea the end of theoretical economic thinking has finally approached an end and mathematics has taken over. Although Heilbroner believes this is not the crucial change in economics of our time. "Numbers abound in any social order that relies on modern technology. All industrial systems generate and require a mass of quantitative information that would have been unimaginable before the advent of high speed production and near instantaneous communication. Today's economics are more interdependent than were the workers in Adam Smith's pin factory, and as this interdependency grows, so do both the quantity of, and the demand for, information on a wholly new scale. Here is where statistics and mathematics enter modern economics (314)". I believe what Heilbroner is trying to say is that due to the mathematical shift in economics it has produced large amounts of information. This large amount of information has only been possible by the development of technology and peoples ability to communicate at a faster speed.
This leads me to question where economics will be in years to come? What other factors could influence economics in the future?
I believe that while we have moved to a discipline dominated by mathematics, there is still room for the philosophical side. As Rachael stated in her post, the dominance of industrialism and instant communication has necessitated the quickness, efficiency, and uniformity that numbers provide.
ReplyDeleteWith that being said, the division of knowledge and constant changes in society leads me to believe that the philosophical side of economics will continue, although with less prevalence. The fact that we live in a world where things change form minute to minute and there is no box that we can place everybody in (as far as tastes, experiences, and point of view) is important. The mathematics that define economics can only take a snapshot of what is happening at a point and time. In other words , it is static. Meanwhile we live in a dynamic world that is constantly changing. With the introduction of technology that keeps us all constantly connected, their is a demand for answers to the evolving problems emerging from our continuously changing world. To this, dynamic explanations that can account for these changes will be powerful, even if we only recognize their importance years late. It is here that I see the philosophical side of the economic discipline still holding its ground.
I agree with Trent. Its a fact that there is more emphasis on the mathematical side of economics then there is on the philosophical side. I agree that the philosophical side of the economic discipline is still holding its ground. I believe that regardless of how mathematical economics becomes, there needs to the side of economics where these numbers can actually mean something rather than derivations, statistics, and other mathematical equations. To me, the mathematical side is somewhat backed-up by the philosophical side. The philosophical side provides depth and insight to what the actual numbers mean; it's the foundation of all economics. Without the depth and insight the mathematics would be meaningless. Economies are always changing, from these changes we base everything we know of the foundation of the philosophical theories.
ReplyDeleteCommunication is vital in the aspect of our economy today due to the ever changing rapid environment that is our economy. Mathematics helps us to better understand and communicate these changes as they occur. With that being said their is still a philosophical foundation which we base our understanding of economics on. Large amounts of information is more accessible today then it has ever been. In the future I believe many of our economic decisions will be based off mathematical formulas and theories that will help us to better understand the changes that need to be made. Trent pointed out that technology is out there and it only further improves our communication, and allows us to try different mathematical theories that can fix potential economic problems. I believe mathematics is the now and future of economic decision making but not necessarily the foundation we base our principles off of.
ReplyDeleteI agree that the philosophical aspect of economic theorizing, such as that that took place during the time of Plato and Aquinas, is disappearing in economics and being replaced by mathematics. However, I think that this shift is a result of a transition in society as a whole and not just in the economic profession. How many philosophers could be named today compared to the ancient world? Individuals have specialized in various jobs, becoming dentists, accountants, doctors, etc., and are not involved in a variety of disciplines and worldly theorizing such as they did during earlier times. The increase in technology has moved various professions toward the greater use of mathematics. In government, for example, statistics, projections, and various other economic- and math-related data is used to study and address various issues. For me, mathematics has an important place in economics but it should not be allowed to be superior to other important issues that deserve consideration in economic analysis. I think that economics does not necessarily need more of the philosophical analysis such as that of Adam Smith and various other figures, but that it needs more study of social issues, such as those considered by Gary Becker. The social decisions of individuals and societies are very relevant in the setting of economics. As some of us have seen in our economic development course, issues such as culture, family size, and attitudes toward western influence can have important impacts on a country’s growth.
ReplyDeleteTo reply to Rachael's comment of if the philosophical side of economics is taking a backseat to the mathematical side of economics. I would like to start with the input of Gary Becker into economics. Gary Becker, as many already have commentated on, completely changed how people viewed social problems within society. With the advent of the economic approach to solving social problems via mathematics and with the basis of the fundamental question of why do people do what they do. I would conclude that the philosophical part of economics is used to present the question and mathematics are used to reaffirm the answer the economist eventually concluded. This is the way Gary Becker does it, and this is the future of economics.
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