A layman’s lament on economics

"A cynic, whose name I cannot immediately recall, held that “Economics is steadily becoming the art of making commonsense difficult to understand”. However, one of the definitions of economics in the Oxford Dictionary is “the practical science of the production and distribution of wealth.” Herein lies a fundamental difference going well beyond mere semantics. Are we dealing with an art (usually juxtaposed with craft!) or a science? One of the cardinal features of science is that results are predictable. This presupposes an ability to control all variables except that which one seeks to study.

A problem that complicates economics is that there is always an element of human behaviour involved. This could often be characterized by irrational or idiosyncratic responses to a given set of circumstances – usually very complex.

This poses two difficult problems. One is that since identical conditions cannot be repeated in the sphere of economics, predictability is not attainable. Since the experimental objects (human beings) behave erratically (Murphy’s Law), quantification is generally hopeless. Of course, one would say, there is the “average man”.

This is again of limited value because this is a mythical creature that at best represents the men of a widely disparate set of responses.

So let us face the fact that Economics is indeed classifiable as an art like painting, music or politics. Responses and reactions are simply not quantifiable. This is why all of these activities are so engaging. Unfortunately, there is some presumption of “respectability” attached to Science."

- Dr U. Pethiyagoda