Why Economics is No Less Scientific than Physics

‘Physics is the only real science. The rest are just stamp collecting.’ Spoken by Ernest Rutherford, Nobel Prize winner in Chemistry. This is a rather extreme view, but it is not uncommon among (primarily) natural scientists. It grabs on to an intuition many have, even in the academic philosophy of science community, that physics is the science, and that other disciplines – especially social sciences – are not. But let’s ask ourselves the question: is this true? Does physics have any special access to the truth that – let’s say – economics does not?

Let’s try to answer these questions. First of all, one has to separate the theoretical parts of physics and economics, from their empirical counterparts. Just like there is theoretical physics, there is ‘theoretical economics’ – although the latter is usually denoted by the more encompassing (and therefore misleading) term ‘economics’. Both theoretical fields try to construct logical or mathematical frameworks – possibly modelling the external world – and derive logical implications from accepting certain principles (the ‘laws’ of the framework). The prime difference is that economics takes individuals as its domain of analysis, while physics takes nature.

Now, let’s look at the empirical counterparts of physics and economics. Both experimental physicists and behavioural economists (a subset of the set ‘experimental economists’) do one thing and one thing only: set up hypotheses, gather data, compare the implications of the hypotheses with the data, and either confirm or refute the hypotheses based on their accordance with these implications. Hence the method applied in both experimental fields is the same. So now we have that the methods applied in both the theoretical and the experimental parts of physics and economics – and hence the whole of the two disciplines- are the same.

Now, given that the method applied is the same, how then could economics be any less scientific than physics? It might be true that physics has a longer history, and is – in that sense – more ‘mature’ than economics. But being more mature does not imply being more scientific. After all: many religions are more mature than physics: does that imply that many religions are more scientific than religion? Of course not.

It is then because there are laws in physics but not in economics? Well, it is true that physics has laws, such as the Law of Universal Gravitation, stating the acceleration of an object caused by the force of gravitation. But economics has laws too; the most well-known being the Law of Supply and Demand. One could say that the latter is not really a law, because it is only true ceteris paribus; that is, if all other conditions – besides the supply and demand of a particular good – remain constant. But isn’t this true for physics as well? In order for the Law of Universal Gravitation to hold, one should neglect such frictions as air resistance. So it appears that, whether it is in economics or physics, there are certain conditions one puts forward in order for laws to be experimentally accurate: neglecting air resistance in the case of physics, neglecting other factors – changes in cost of production, technological innovation etc. – in the case of economics. So the two fields do not seem to differ in that respect either.

Hence it is seems that the only difference between physics and economics, is its domain of study. But can the object of study really determine whether some field is more scientific than another? And if so, why would that be? It cannot be because physics’s object is more natural, because there is nothing unnatural about individuals; individuals are part of the world we live in, just like atomic particles, gravity and radioactivity.

Hence, given all of the above, there is does not seem to be any compelling argument for the claim that economics is less scientific than physics. Sorry mister Rutherford.

But what do you think?

Flipping the Hierarchy of the Sciences

There are different sciences, and each one is ‘appreciated’ for its own unique contribution to our collective knowledge pool. But some sciences are appreciated just a little more than others. Whether it be the social sciences that are regarded as the most complex and developed sciences, as Auguste Comte believed, or the natural sciences as being the ones coming closest to the ‘objective truth’, as people in our society – implicitly or explicitly – seem to presume: there’s always a certain hierarchy in our perception of the sciences.

It’s understandable why – at least in our society – the natural sciences are regarded to be ‘better’ or ‘more scientific’ than those ‘subjective’ social sciences. The natural sciences – physics, chemistry etc. – are related to Western industrialism and the inventions (steam engine, electricity, televisions etc.) it brought forth. And since natural sciences –> inventions –> money, and since money is good, the natural sciences are good too. At least better than the social sciences, for the latter won’t make us millionaires. But even though such hierarchies are understandable, they might have some negative implications for the manner in which the ‘lower’ sciences are being looked upon. They might, for example, lose their ‘scientific status’, and hence the respect that comes with this status. But there’s a remarkably easy way to solve this problem.

People are used to thinking in terms of higher and lower, at which ‘higher’ is associated with ‘better’ and ‘lower’ with ‘worse’. This vertical manner of thinking might be a relic from the past, in which religion was very prominent and in which higher meant closer to heaven, and in which heaven was good. But whatever metaphor was responsible for the pyramid-structured hierarchies we tend to visualize in our heads, it’s a fact that it’s omnipresent in our conceptual frameworks.

But let me ask you something: what would happen if we would turn this vertical hierarchy on its side? If we would obtain a horizontal ‘hierarchy’? Would we then still have a hierarchy? Probably not, for the distinction between higher and lower ranks would have disappeared. It’s just left and right, with left – for example – being the social sciences and right the natural sciences – in case you order the sciences based on a criteria such as ‘nature dominance’. Or you could put the natural sciences on the left hand side and the social sciences on the right – in case the variable of choice would be something like ‘people dominance’. Whatever criteria you use for ordering the sciences, the hierarchy will have disappeared, and hence the negative consequences for a science appearing at the bottom of the ranking.

It’s a very easy change in ordering the sciences, but one who doesn’t entail the negative consequences of a vertical hierarchy.

But what do you think?