The role of economics in policy-making and its objectivity is a subject of debate, as highlighted in a recent op-ed by Dr. Jonathan Newman in Eurasia Review [a56bbbd4]. The article challenges Robert Reich's claim that economics should be considered in conjunction with politics and morality. Reich argues that economics is not objective and should be focused on determining the kind of society we want. However, the author counters this by stating that economics is an objective science that provides cause-and-effect statements derived from human action. Understanding objective cause and effect is necessary for proposing policy prescriptions. The article criticizes Reich for using a socialist utopian dream as the starting point for his economic analysis. It concludes by stating that economics is an objective science that can inform policy decisions.
The op-ed raises important questions about the role of economics in policy-making and the subjectivity argument. While Reich argues for considering politics and morality in economic analysis, the author emphasizes the objectivity of economics as a science that provides valuable insights for policy prescriptions [a56bbbd4].
In a study by economists Roland Bénabou, Armin Falk, and Luca Henkel, the trade-offs between ends and means in decision-making are explored [52872cb5]. The study finds that a considerable number of participants are unwilling to engage in unsavory but inconsequential behavior as a means to achieve a benevolent goal. However, there is no clear pattern as to which means people have qualms about. The study also reveals that individuals tend to display consistency in their selfish or unselfish behavior in different decision-making scenarios. Strong abstract values, such as a desire to avoid lying or refusing to pay or accept bribes, are not necessarily correlated with being unselfish in consequential choices. The research opens up a new frontier in the field of behavioral economics, expanding the understanding of the complexity of human interaction beyond material payoffs.
The op-ed by Dr. Jonathan Newman challenges the subjectivity argument regarding the role of economics in policy-making, emphasizing its objectivity as a science [a56bbbd4]. In contrast, the study by Bénabou, Falk, and Henkel delves into the trade-offs between ends and means in decision-making, shedding light on the complexity of human behavior and the consistency of individuals' choices [52872cb5].