Saturday, March 16, 2013


I've been reading The structure of science; problems in the logic of scientific explanation (1961) by Ernest Nagel and found that there is a methodological issue behind the debate between the Keynesians and the Free Market Fairy crowd, notably Hayek and von Mises. The latter assert that there are no terms of economic theory that can't ultimately be reduced to properties of the individual, the former asserts that there are terms that are not so reducible. Among the latter are terms such as National Income, Total National Consumption and Total National Savings.

The FMF crowd is pre-disposed to see only the trees instead of recognizing that there is also a forest and this fits well with conservatives obsession with the individual.

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