““Some people argue that economics is an exception to this general story. Economics, they say, provides a much more analytically precise and tightly integrated body of theory—a theory that is explicitly linked to a small set of generally accepted assumptions about human beings’ motivations and decision-making procedures, and that has been rigorously tested against quantified empirical evidence. Among all the social sciences, economics alone, these boosters contend, has a defensible claim to true scientific status. Economics certainly deserves to be regarded as the queen of the social sciences; unlike the others, it has unquestionably produced useful knowledge on a wide range of issues that affect our daily lives. Yet we should be suspicious of its bold claims to scientific status. Modern neoclassical economic theory is firmly grounded in the kind of mechanistic worldview (described in “Complexities”) that sees the economy as a machine, and to explain the operation of this machine it imports many of the concepts of nineteenth-century classical physics. So it stresses the natural tendency of the economy to find a stable equilibrium and the possibility of isolating the effect of changes in different economic factors (like changes in interest rates) on economic performance.25 As well, to achieve its simplicity and elegance, the theory focuses on the behavior of independent individuals operating in a market—individuals who are atomized, rational, similar in preferences, and stripped of any social attributes. But this makes the theory largely asocial and ahistorical: there’s generally no place in it for large-scale historical, cultural, and political forces that sometimes have a huge impact on our economies—forces like the emancipation of women, rising environmental consciousness, or democratization in poor countries. Because it’s insensitive to broad social forces, modern economic theory is also surprisingly insensitive to its own tight relationship with capitalism. Nevertheless, it’s clearly a product of capitalism—a specific, historically rooted economic system—and it only makes sense in the context of capitalism.26””
