Some people tell me that
as my Philosophical Muser Blog is underpinned by economic and philosophical
analysis I can appear to be slightly uncaring with regard to the emotional and
ethical aspects of situations under discussion. Yet I would hope that anyone who knows me in person knows how highly
I regard emotional and ethical aspects of life. Why, then, can it come across
as though I don't in some of the articles I write?
I think I know the answer
- it's to do with the familiar distinction between positive statements
(statements about how things are) and normative statements (statements about
how things ought to be). The former involves matters of fact, and the latter
involves matters of opinion about ethical considerations. Economic analysis is
primarily about positive statements not normative ones. An economist who
insists, for example, that rent controls, import tariffs, business subsidies
and the minimum wage are ill-advised policies is dealing in positive science
not normative values.
To make a normative
statement and say what ought to happen one must combine matters of fact with
how those facts affect the people involved. If for example rent controls damage
the rental sector and impair important information-carrying price signals then
one can suggest that politicians ought to vote against it as a policy, and that
to do otherwise would be to unethically put vote-winning and popularity over factual
assent. This is precisely what you should expect from economic analysis - it is
the framework in which ethical statements should be uttered.
So for example, with a minimum wage rise people's first and often only concern is low-paid workers; with rent controls people's first and often only concern is tenants; with rises in interest rates people's first and often only concern is borrowers, and so on. Economists sometimes seem unsympathetic - but it really isn't the case - it's simply that economists know that in situations like the above, everyone needs to be considered - not just the most obvious group.
The other criticism economists get is that while we are good at the theoretics, we are less good at applying those theoretics to actual goings on (a popular case in point is the criticism that not many economists predicted the financial crash of 2008). Again, this is to misunderstand the situation. I'll explain by considering an analogy between economists and garage mechanics. Garage mechanics are in the business of fixing cars when there is a fault. They locate defects by asking the customer what brought them to the garage; they then look at the area of the car in question; they run the engine and listen for anomalous noises; they look for oil spillages, water leaks, structural damage, and so forth. But on top of that they have a service history book - so by consulting that they can also predict when different parts of the car might wear next, as well as forecasting potential hazards.
That's a pretty good analogy for what an economist is like - but instead of cars, driving and parts, we have people, behaviour and arguments. Economics looks at how people behave, what incentives they respond to, and all kinds of associative explanatory theories. No human explanatory protocols are perfect, and there's no predicting with 100% accuracy, but that doesn't matter - there are always plenty of reasons to think as we do, and (as my Blog posts indicate) numerous ways to observe patterns, pick holes in people's arguments, see where hypotheses are in error or only half-right, and show the inconsistency between what people claim and what is actually the case.
Lastly, the other reason why people can find themselves affronted by blogs like mine is that they value their opinions - and they are not quite ready to face up to the reality that opinions are like brass when compared to the gold standard of facts, the rhodium of reason and the platinum of logic.
Lastly, the other reason why people can find themselves affronted by blogs like mine is that they value their opinions - and they are not quite ready to face up to the reality that opinions are like brass when compared to the gold standard of facts, the rhodium of reason and the platinum of logic.
Unlike facts, reason and logic, which withstand all external scrutiny hurled against them, opinions merely confer a judgement that if wrong has about as strong a protective barrier as a shield made of baked camembert. It may be tasty, but it will always be carved up by the gold, rhodium and platinum utensils that penetrate it.
I wrote a whole blog post on the danger of hiding behind the protective shield of opinions (click the link to read more - No One Should Be Entitled To Their Opinions) - but to give you a brief digest if you're pressed for time, if I think that Yes Minister is the best British sitcom, that onion rings are rancid, and that George Orwell's Animal Farm is superior to his Nineteen Eighty Four, these are opinions because there is no objective standard outside of my own view by which such claims can be corroborated. Many people may agree with me, but that doesn't make them facts.
Given that this blog deals with lots of issues whereby other people's opinions are maladies that are best cured by facts, reason and logic, it is understandable that the doctor that tries to administer the medicine is sometimes seen as the knifeman trying to lacerate the flesh. But I promise you, it isn't so - I just want to place a higher premium on what's factual, reasonable and logical than on what's popular and comforting but ultimately short-sighted, misleading and damaging. On a daily basis it strikes me as strange and regrettable that so many of our politicians and social commentators are somewhat reluctant to do the same.