Identity

Situational analysis

Science is a trial-and-error process: ignorance is the starting point, and great insights are few and far between. Economics is a failed science. The awkward mixture of theoretical and political economics has not produced satisfactory results with regard to material and logical consistency. Hence theoretical economics has to be extricated from political economics and reconstructed upon objective foundations. Advanced theory, i.e. assertions beyond the informative description of various subfields, is largely vacuous. Description, unsubstantiated modeling, psychologism, biologism, physicalism, sheer toolism, plain observationism, myopic empiricism, historicism, exegesis, rhetoric, or metaphor do not make a consistent and empirically valid theory. Orthodoxy cannot give a theoretical account of how the actual economy works, neither can Heterodoxy. Practitioners and down-to-earth empiricists cannot see beyond their noses. Within the accustomed conceptual frameworks, real progress is impossible. The situation calls for a new Paradigm. The new Paradigm calls for objective formal foundations. In the most general terms, the economics Paradigm Shift consists of switching from the behavior-centric bottom-up approach to the structure-centric top-down approach. This is comparable to the Copernican turn from geo-centrism to helio-centrism.