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An Introduction to Multiplicity in Economics
For the students of XIth & XIIth Std., G.S.E.B, C.B.S.E &
I.C.S.E. as well as more advanced readers in
Economics and Philosophy of Economics.
Bhagirath. P. Baria
www.rathandeconomics.blogspot.in
March 2014
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An Introduction to Multiplicity in Economics
For the students of XIth & XIIth Std., G.S.E.B, C.B.S.E & I.C.S.E. as well as more
advanced readers in Economics and Philosophy of Economics.
Abstract
This short introductory paper is meant as an introduction, to the
diversified and multiple nature of Economics, for higher secondary
students. No concept in Economics in general has a common
consensus. There are at least two views on any given Economic issue or
theory [at times more than two]. Controversy is at the heart of this
discipline. This paper shall explain the young students studying in any
Educational board [C.B.S.E., G.S.E.B., I.C.S.E., etc.], the existence ofmultiplicity and controversy in Economics. The belief that there can be
something like Economics per se is fundamentally incorrect. There are
many different kinds of Economic theories, only particular theories are
taught to students at Higher secondary level- which is the primary
building block as far as the subject of Economics is concerned. Students
of commerce deal with this subject for the first time here. This isnt to
imply any sort of conspiracy theory, but rather a lack of understanding
and desire to communicate what Freeman calls Pluralism inEconomics1. The theme explained in this paper has been a prime point
made by this author in his classes in Economics.
This is an introduction, not a full-fledge discourse on the topic touched
which is vast by its very nature and scope2. More advanced students
and academicians may consider this as a brief introduction to an
alternative epistemology in Economics that they can include in their
class-room teaching3. For them, this can be an alternative epistemic
method- indeed with the danger of oversimplification.
1Freeman, Alan. The Economists of Tomorrow: The Case for a Pluralist Subject Benchmark Statement for
Economics. Association for Heterodox Economics, London.2Literature on Plurality in Economics is substantial. A reliable entry point in this methodology can be the
research paper The Economists of Tomorrow: The Case for a Pluralist Subject Benchmark Statement for
Economicsby Alan Freeman, Association for Heterodox Economics, London. His papers can be found online at:
http://econpapers.repec.org/RAS/pfr102.htm.Various writers, both Marxists and non-Marxists have written
on this subject. For more details, contact this papers author.3Teachers/Tutors should modify what has been explained here as per the needs of their students. Local
conditions have to be kept in mind while explaining such ideas. For more material to incorporate in their class-room teaching sessions, such interested professionals can contact this author as per the details given in the
last section of this paper.
http://econpapers.repec.org/RAS/pfr102.htmhttp://econpapers.repec.org/RAS/pfr102.htmhttp://econpapers.repec.org/RAS/pfr102.htm8/12/2019 An Introduction to Multiplicity in Economics by Bhagirath Baria
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Index
1 Preface
2 Introductory note
3 Theoretical Illustrations: Law of Demand and Theory of Wagedetermination under perfect Labour markets
4 Views of some Economists on this issue4Mark BlaugKarl MarxPaul Sweezy Ludwig von MisesRobert Murphy
5 A note on G.S.E.B.s syllabus of Economics in XIth and XIIth std.5
6 What is Economics? A controversial question
7 Neo-classical and Keynesian Economics: Is that what Economics isall about?
8 An abstraction-exercise: Tree and Economics
9 How to study Economics- both Textbook and Non-textbook?
10 Anticipated criticisms
11 Conclusion
12 References & About the Author
4The choice of these social theorists/Economists must be explained briefly. These authors have explicitly
written on this issue in a very accessible manner. A theorist will have to make a subjective starting point at
some point in his/her enquiry. These Economists have provided such an analysis that was found suitable to the
topic under discussion here.5
This is a very brief survey on G.S.E.B.s syllabus structure in Economics, its approach and the anti-Pluralisticcharacter of its textbook. Other issues such as factual error, theoretical errors, poor presentation of the study
material in textbook, etc. have not been touched upon.
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1. Preface
Young students, approaching Economics for the first time in their school
years, have to enter the discipline of Economics through a set of
theories that are put in a textbook and presented as an introduction toEconomics. What happens here is that those students and their tutors
end up confusing an abstraction as a reality. For more advanced
readers, this means an epistemological fact becomes an ontological
fact. Or, in other words what should be understood ontologically is
understood epistemologically and vice-
versa. This is incorrect. Our young
students, who represent this nations
future, deserve to know the truth about thesheer diversity and controversy in
Economics. They must know that
Economics has never been a subject of
broad consensus and clearly defined
meanings. None of the social sciences
have been. Introducing the students of
higher secondary to Economics requires
a very different approach. This approachhas to explain the inherently controversial
nature of this subject. A set of principles,
called the principles of Economics are
presented to fresh learners as the
principles of Economics. Their role then is
to learn those principles, understand them,
and reproduce them in the exams which
they are subjected to. Such an approachrepresents a monotonous method- a
monotheoretic* view6. It is high time to introduce the pluralist7 view to
Economics, the view that fully recognizes controversy and differences as
a part of Economics development and existence.
6Freeman, A. and Kliman, A. Beyond Talking the Talk, (2008).
7A Pluralist view on the other hand accepts the multiple and controversial nature of Economics and attempts
to communicate that with the students learning Economics, especially for the first time. This would ensure athorough knowledge about the diversity in Economics which a mere History of Economics course cannot
provide with.
Epistemological: Means thatwhich is related to
Epistemology..Epistemology: It is thescience of Knowledge. It is abranch of Western Philosophy.Questions such as HowKnowledge is produced? Howdo we know things? Can wereally know anything? Etc.
Ontological: It is the study ofOntology.
Ontology: A branch ofWestern Philosophy. It studiesPhilosophical issues related toour existence, our being. Whydo we exist? What does itmean to exist? What is reality?Etc.
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Only teachers, in schools and probably in colleges, cannot solely be
pinpointed for this fact. It is the very educational system that makes it
compulsory for a tutor to pass on the knowledge that some
board/authority [through its formal bodies] prepares, to be taught to the
students falling under its purview. But still, a teachers fundamental role
is to enlighten her students about the
subject she teaches. And the onus is upon
her to defend the truth- no matter how
relative- that there has never been and
can never be any discipline such as
Economics. There can only be a specific
type of Economics which is taught to students.Alternatives always exist.
And the alternative you adopt shall strongly affect the conclusions you
reach.The facts open to all. One only needs to explain it to the young
learners.
* A monotheoretic view can be compared with a Monist view. Such a view about things believes in existence
of a single true theory. In religion, for example, we have Monotheists who believe in the existence of one
single God. Religions that originate from Judaism present such a view. In Economics, this means only one or a
group of some particular theories is considered the correct theory/most scientific theory. Rest of the ways oflooking in Economics are considered outside the mainstream. To a great extent, these approaches are
discriminated against too.
Truth:In Philosophy, this isunderstood as a fact or belief
that is accepted as true.
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2. Introductory note
Economics has had all types of meanings associated with it. We have
accounts of existence of theories of just price since antiquity8. There
are two broad ways of looking at how Economics has developed up tonow9:
Absolutist History of Economics means a
History of the scientific principles of
economics. These are independent of the
social, economic, political, cultural, etc.
aspects of our lives. These are Universal
principles of Economics that can be applied
to any economic problem or any Economicsystem- be it Communist, Capitalist or an anarchist economy10. At least
that is what such a set of principles would be expected to do. Such an
approach to Economics has its own advantages. It focuses on the non-8Meek, Ronald. Studies in the Labour theory of Value.1973. Chapter 1- Value Theory before Adam Smith.
Here Meek talks about the existence of the concept of just price even in antiquity. He cites Thomas Aquinas
Summa Theologica.9Blaug, Mark. Economic TheoryRetrospect,1984. Introduction section of this work talks about this approach.
This work delves in the theme developed by Blaug. He uses the terms absolutist and relativist while we use
the terms absolute and relative too. Both types of terms are used interchangeably in this paper.10There are fierce debates between the proponents of alternative political/economic systems. This paper
doesnt aim to survey that, hence ignores that literature.
Developmentof Economics
Absolute Relative
Universal: Defined assomething/some event present oroccurring everywhere; existent oroperative everywhere or under allconditions.
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ideological aspects of the Economy. Knowledge is pure here. It is free
from disturbing forces of emotions, culture, politics, etc. It develops a
corpus of ideas and principles that are independent of the time and
place that theory is applied to.
Relativist History of Economics means a History that understands every
Economic theory in relation to the particular time and place it is applied
to. It is with reference to the cultural, political, social, religious, etc.
factors under which a theory is applied.
Let us discuss two basic examples to illustrate the above mentioned
points. You have already studied this in you XIth std.s syllabus of
Economics [G.S.E.B.] or XIIth std.s syllabus of Economics [C.B.S.E.].
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3. Theoretical Illustrations
A. Example 1: The Law of Demand.
Law of Demand states the inverse functional relationship between Price
of a commodity and its quantity demanded for a given time and place,
ceteris paribus11. This is one of the most accepted empirical facts in
Economics.
George Stigler notes, How can we convince a skeptic that this law of
demand is really true of all consumers, all times, all commodities? . . .
Perhaps as persuasive a proof as is readily summarized is this: if an
economist were to demonstrate its failure in a particular market at a
particular time, he would be assured of immortality, professionally
speaking, and rapid promotion. Since most economists would not dislike
either reward, we may assume that the total absence of exceptions isnot from lack of trying to find them.12
Absolute view: The absolute view of looking at Economics is precisely
explained in the above quote of G. Stigler. This law is of Universal
importance and can be applied anywhere. Its a Law, hence must be
applicable anywhere given the assumptions stated are satisfied. This
11Ceteris Paribus means all other factors remaining constant. Here well treat all the non-price determinants
of Demand as constant. Slope of the demand curve is assumed to be constant too. Preferences, Income ofconsumers, Population of Consumers, supply-side factors, etc. are assumed constant.12
Stigler, George. The Theory of Price. 4th
Ed. Chapter 3- Consumer Behaviour. Pg. 22, 23.
0
200
400
600
800
1000
1200
0 100 200 300 400 500 600
Demand[Kg.]
Price[Rs.]
The Law of Demand
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law is thus a tool for studying and understanding the economy. It is also
useful in solving economic and business problems.
Relative view: Demand can play such an important role, only when a
particular type of Economy and a particular type of society existswherein things are produced not for self-consumption, but for exchange
on markets. Hence the Law of Demand requiresproduction for market,
laws that protect such markets, Division of labour, etc. Only if these
conditions can be satisfied, will such a law play any role in the economy.
Demand didnt always play such an important role in human history.
Previously in other societies such as slave-society or feudal society,
there was no production for market and hence no concern for Market
Demand and Market Supply.
B. Example 2: Theory of Wage determination; Pricing of Factors of
Production.
[Note: Darker curve [downward falling linear line] represents Labour
Demand curve {in million nos.}; Lighter curve [upward rising linear line]
represents Labour Supply curve {in million nos.}]
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
0 100 200 300 400 500 600 700 800
LabourDemand;LabourSupply
Wage rate[Rs.]
Theory of Wage determination
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You have studied this theory in Microeconomics, in the chapter on
Pricing of Factors of Production.
Absolute view: Such a view of looking at Economics would understand
this as the correct theory based on which a labourer must earn. It wouldconsider such a theory as the result of years of development of
Economic ideas and its culmination into this theory. Indeed, such a
theory is applicable to a market economy, and absolutist theorists would
accept that, but this sort of determination of wages would be considered
a natural fact of the economy we live in, independent of the social,
cultural, political factors that make such a way of deciding wages
possible. This theory makes possible the most efficient and just
determination of wages. No other theory can provide as good a solutionto this economic issue as this theory does.
Relative view: Such a view of looking at Economic would view this as a
particular way, amongst various other ways,of deciding who should earn
how much. It would consider its sociological basis, the conditions that
would be required to apply such a theory in real economy around us. For
e.g. without labourers selling their labour [or the more correct word-
labour power]. In other words many conditions in the real world must be
satisfied to actually have such a way of deciding wages. It is only under
a particular type of economy that such a method of wage determination
shall be useful and applicable. For e.g. in an economy with a very limited
Labour Market wont find this theory much useful.
What the above examples show is that how we view the history of
Economics affects how we look at Economics. If we consider the
present-day theories as the only theories that can be called Economics
based on some criterion such as efficiency or applicability, well end upperceiving Economics as a scientific subject, that can produce principles
and tools that have Universal validity- just like Physics or Biology does.
Such a view is unwarranted for many reasons. One of them is that
Economics is not a science. Let us look at what some Economists have
to say about the scope of Economics as science. They answer the
question- Can Economics use scientific methods to study the Economy
and Economic actors? In other words, is Economics an absolute or a
relative subject?
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4. Views of some Economists on this issue
This section will survey what some of the finest Economists and social
analysts have said on this topic- diverse nature of Economics and
multiplicity in it.
I. Mark Blaug13
13
Blaug, Mark. Economic TheoryRetrospect. 1984. Introduction section of this work talks about thisapproach. All the above quotes have been cited from the said section of this work. This is perhaps one of the
finest Histories of Economic thought. Refer foot note 9.
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Let us make some observations based on above quotes:
Mark Blaug, considers Economics as a scientific study. Hedisagrees with those who think that Economic ideas correspond to
or can be better understood only relatively, i.e. in relation to the
prevailing conditions. For him, ideas have a momentum of their
own[emphasisadded].
Hence Economists can be classified and ranked as per their error
or truth. What exists today becomes the result of hundreds of
years of past development in Economics. So a teacher can tell her
students, Youre going to study principles of Economics. Theseare the most scientific and modern tools/rules/concepts/theories
that we have.
II. Karl Marx14
Because the body, as an organic whole, is more easy of study than are
the cells of that body. In the analysis of economic forms, moreover,
neither microscopes nor chemical reagents are of use. The force of
abstraction must replace both. But in bourgeois society, the commodity-
form of the product of labour or value-form of the commodity is the
economic cell-form. To the superficial observer, the analysis of these
forms seems to turn upon minutiae. It does in fact deal with minutiae, but
they are of the same order as those dealt with in microscopic anatomy.
Marx stresses the need to abstract. We Economists cannot be one
hundred percent sure about our researches. And modern
14Marx, Karl. Capital, Vol. I. MIA edition. Preface to the first German Edition. Available for free at:
https://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-I.pdf
https://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-I.pdfhttps://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-I.pdfhttps://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-I.pdf8/12/2019 An Introduction to Multiplicity in Economics by Bhagirath Baria
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Economics isnt. Disciplines such as Econometrics, EconPhysics,
etc. take this inherent randomness in Economics into
consideration.
The laboratory for an Economist/Social-analyst is the society at
large. We cannot have Economic experiments like Biologists can
on mice or monkeys. We must observe and abstract. Well learn
more about it below.
III. Paul Sweezy15
After stating how Lionel Robbins defines Economics, Sweezy goes on to
make some observations regarding this definition of L. Robbins, as
below:
We learn that neo-classical Economics [Prof. Robins was a neo-
classical Economics], aims at finding/proposing/producing
Universal laws. This means that an Absolute view about
Economics is adopted. Here, the specific conditions under which
15Sweezy, Paul. The Theory of Capitalist Development.1962. Introduction. Pg. 3, 4.
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such a law is produced and applicable is disregarded. An
Economic law/principle is judged based solely upon its scientific
value- its applicability, its fulfilment of the scientific criteria- such as
being logically correct, applicable to all forms of economies[what
Prof. Sweezy calls above all forms of society].
XIth and XIIth std.s textbooks too provide such a view of
Economics, dont they? Law of Demand, Macroeconomic
equilibrium theory, Theory of Income Distribution [explained in
chapters on National Income, Factor Pricing, etc.], Marginal utility
theory of Value [studied in Microeconomics- Product Pricing
theory], etc. Instead of presenting these theories as specific to a
very specific set of conditions, specific to a very particular type of
Economy, these laws and theories are stated as Universal laws.
All this could be avoided, simply by admitting that only particular
types of Economic theories are taught to Higher Secondary
students, not Economicsas such.
IV. David Gordon on Ludwig von Mises [a well-known Austrian
Economist]16
The method of economics differed fundamentally from that of physicsand biology, the sources of the other classes of natural law. A sound
theory of knowledge thus must place proper stress on deductive inquiry
into human action, the method of economics. A sound theory of
knowledge thus must place proper stress on deductive inquiry into
human action, the method of economics. The place of economics in
ethical theory is less direct; but here too, the results of economic
analysis closely circumscribe the available options in value theory
Ive avoided Ludwig von Misess original quotes as the targeted
students might find them difficult.
As Gordon says above, Ludwig von Mises considered Economics
as distinct from pure sciences. He rejected the scientific method of
inquiry and stressed on the purely reasoning-based method of
inquiry- the deductive method. We have studied something called
inductive logic and deductive logic in microeconomics during out
16Gordon, David.The Philosophical Contributions of Ludwig von Mises. The Review of Austrian Economics
Vo1.7, No. 1(1994):Pg. 95-106.
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classes in your XIth std. Remember? You even wrote their
meanings in your class-notes. Find it out in your chapters in
Microeconomics and your coaching class notes dictated during
the classes. [Hint: It has something to do with a Cone and an
inverted Cone]
V. Robert Murphy17
One important reason for this gulf between the success and prestige of
the natural sciences on the one hand, versus the mediocre results and
hostility to the social sciences on the other, is that the objects of study in
the natural sciences are fairly simple, and their behaviour seems to be
governed by a concise set of rules. Consequently, the hard sciences can(typically) rely on controlled experiments to evaluate their theories.....
Physical theories make predictions about objects in the material world. It
would be very difficult for a newfangled yet ultimately inferior theory to
sweep the profession in a hard science (such as physics), because its
inferiority would be demonstrated repeatedly in experiments.
Robert Murphy, also an Austrian Economist, considers Economics
as incapable of having controlled experiments. Many before and
after him have stressed this point. But this quote is clear and
simple, hence has been included.
Lack of experiments is not an impossible problem. Something
called Behavioural Economics makes it possible to experiment,
though not as in pure sciences.
What do we learn from the above quotes? [Dont bother if you do
not understand these quotes. Just try to get some touch of what is
being discussed. You can also contact me for further clarification.]
Some think Economics is scientific. It can be evaluated based on
its merits and demerits. Various theorists can be ranked and what
exists today is the best possible, most efficient outcome of the
past. Mark Blaug, J.M. Keynes, Vilfredo Pareto, etc. fall in this
camp.
Some think Economics is not scientific. It can never be. Marx,
Sweezy etc. fall in this camp. Mises and Austrians in general
17
Murphy, Robert. Lessons for Young Economists. 2010*, available at:http://mises.org/books/lessons_for_the_young_economist_murphy.pdf
*- I am not sure about its year of publication, hence took its copyright as that of publication.
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cannot be classified here as they do believe in Universality of their
economic theories and principles.
Still, their views on the approach to Economics is interesting and
useful here, hence they have been included. But Marxists believe
that Economics can be scientific and relative, both at the same
time. This is different than Blaugs understanding. Mark Blaug
considers Economics as scientific only when its evolution and
approach can be understood as Absolutist. Theres a lot to say on
this. One single paper cannot talk about all this.
[Note: Do not confuse the above points with the debate on whether
Economics is a Science is an Art. Thats a very different issue.]
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5. Note on G.S.E.B.s syllabus of Economics.
XIth std.: G.S.E.B.s textbook on Economics has been divided into two
parts; 1) Microeconomics; 2) Macroeconomics. Though the textbook
does not clearly state this, this can be easily understood by looking atthe index. The problem with this is that it presents Economics as having
these two divisions only.
One might argue that this is an elementary textbook and cant deal with
the complexity of Economics at the beginning. But that arguments is
invalid because the textbooks deal with some demanding and
complex[at least at this level] concepts- e.g. Marginal Efficiency of
Capital, Theory of equilibrium of firms under perfect competition,
Multipliers, etc. If the textbook makers find such neoclassical Economics
as teachable to students studying Economics proper for the first time,
citing the elementary nature of the subject at this level cannot be
considered as a sufficient condition for not introducing diverse sub-
divisions of Economics properly.
Further, G.S.E.Bs syllabus of XIth and XIIth std.s Economics
represents the absolutist way of looking at Economics and its History. In
XIIth theres a subject called Indian Economy which is a part oftraditional Macroeconomics course. The name of the textbook [in XIth] is
Economics. Later well see why such a title is problematic.
For now, we can say that Economics is not a singular entity. It has a
tremendous amount of controversy and differing interpretations. The
textbook should have included that. Instead, it presents only the neo-
classical and Keynesian economics to students as if that were the only
Economics out there.
Similar argument applies to the textbook of the C.B.S.E. Including
accounts of various schools of thought on various theories in Economics
would better explain students as to what Economics is really about. Not
just that. These textbooks have no note or a clear statement that
students shall be taught a particular type of Economics- neoclassical
and Keynesian.They simply present it as the Economic principles that
students ought to learn. As if theres nothing more to Economics than
Microeconomics or Macroeconomics or Indian Economy.
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6. What is Economics? A controversial question.
Is Economics a defined subject? Does it have a consensus on what it
means to be Economic? A brief look at the current diversity in Economic
schools of thought tears apart any such belief that theres consensus.
[Source courtesy: Social Democracy for 21st century blog,
http://socialdemocracy21stcentury.blogspot.in/2011/01/overview-of-major-schools-of-economics.html]
The above diagram is not exhaustive but gives a brief overview of the
schools of thought. In each school of thought we again have sub-
divisions. E.g. in Marxist Economics we have
- Analytics
- Value-form theorists
- Temporalists
- Leninists
- Trotskyists
- Underconsumptionists
- Over-accumulationists
- Neo-Marxists, and many others
Hence theres a tremendous multiplicity of views even within various
schools of thought in Economics. Each of the school above has a
different answer as to what Economics is.Still, it is taught as if theres a
broad consensus on these issues and students hardly get a gist of thepluralistic nature of this subject.
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7. Neo-classical and Keynesian Economics: Is that what
Economics is all about?
The specific type of Economics that is taught to higher secondary
students in any of the boards nation-wide is called Neo-classicalEconomics. Microeconomics is a neo-classical product. It is one way of
looking at Economy. It excessively depends on methodological
individualism. Well-read writers such as Kaushik Basu18and others have
repeatedly stressed the need to overcome such an outlook of the
economy. On a brief survey of the literature of these textbooks, one
would hardly find a mentioning of this fact.
Macroeconomics as taught at the said level [XIth and XIIth- G.S.E.B.,
C.B.S.E., etc.] is Keynesian Economics, associated with J.M. Keynes. It
is a macroeconomic/aggregate application of neo-classical economics
itself. Keynes continued the neo-classical tradition, albeit at a greater
level of generality. He doesnt propose a methodology that differs to
neoclassical method, but brings in changes that could make it applicable
to economy as a whole. Indeed, in this process he disagreed with many
important principles of what is today called neo-classical economics- e.g.
J. B. Says famous and little understood Law of Market, the laissez faire
belief of minimum state activity, etc. Fundamental principles remain the
same. Theres controversy surrounding this too. But lets be brief for
now.
18Basu, Kaushik. Beyond the Invisible Hand: A Groundwork for a New Economics. Princeton university Press:
2010. In this work, Mr. Basu points out the limitations of methodological individualism in chapter 6- TheChemistry of Groups. One must refer this work for an enlightening and more scholarly discussion on some of
the themes developed in this paper.
Economics as inXIth and XIIth
std.
Macroeconomics
Keyniesian
Neo-classical
Microeconomics Neo-classical
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Always bear in mind that you have studied and will always study a very
particular type of economics, not Economicsas such. Remembering this
shall keep you aware about the fact that there exist various alternative
schools in this discipline. As also it would provide you openness to
newer methodologies and ideologies in Economics.
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8. An abstraction-exercise: Tree and Economics.
Let us do a mental exercise. Follow these steps:
You can never imagine a Tree! Tree is just a linguistic-tool for
representing all the diverse types of trees under one single heading forsimplicity in communication. But those who believe this is merely a
semantic issue must think twice. Letslearn why?
Try no matter how hard, you shall always end up imagining a particular
type of tree, with specific colour, shape, leaves, structure, location, etc.
There can be no Tree in general. This brings us to another important
aspect. Can there be something like Economics?
Just like above, you can never imagine Economics in general. Those
who do say that they have learnt Economics or teach Economics or
know Economics are simply unaware. It can be used as a
conceptual/linguistic tool to put together all types of economics, but the
world Economics can never represent just Economics. It will always
represent a specific type of Economics because only specifics and
particulars exist in real world. Words such as Fruit, Tree, Happiness,
etc. are abstract categories. They can only be experienced in particular,
as a specific fruit, as a specific tree as a specific form of happiness.
1 Relax for a moment.
2 Imagine a 'Tree'.
3 Are you sure it was indeed a 'Tree'?
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What do we learn here?
Textbooks saying Introduction to Economics or just Economics will
explain only a specific type of Economic theory. In this context it is Neo-
classical and Keynesian Economics.
If you end up equating the term Economics with above mentioned
schools, youll be committing a fallacy. As discussed above, a
knowledge-related fact will be converted into a reality-related fact. What
is just a language-tool will be converted into representing something
real.
Economics Neoclassical and Keynesian Econ.
Always bear this fact in your mind. You always study a specific type of
Economics. In you XIth and XIIth std. You studied above mentioned
schools. Not Economics in general.
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9. How to study Economics?
Further explanation of this division can be as follow:
You must study two types of Economic schools as above:
1) Textbook Economics, also called Mainstream Economics.
2) Non-Textbook Economics, also called Heterodox Economics.
Textbook
Economics
Non-Textbook
Economics
Economics
Economics
Textbook
Neo-
classical
Keynesian
Non-textbook
Heterodox
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What books to study? How to go on learning such different types of
Economic theories? Which are the best sources to learn these? What
are the career opportunities in non-Textbook Economics? You can
contact this papers author [Bhagirath Baria] for more details on such
questions. You can also contact him through social-media.
To study Textbook/Mainstream Economics, you must focus on three
ingredients:
What to study in each of these components is again a very lengthy
question. Please contact this author for further details [contact details
given at the end of this paper].
TextbookEconomics
EconomicTheory
Diagrams[Geometry ofEconomics]
Mathematicsand Statistics
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10. Anticipated Criticism
I assume that some criticisms might be raised; Ill try to address them
here:
1) This is a mere semantic issue.
Such a view fails to look at the term Economics as a linguistic tool
meant to signify some meaning with that them & the term Economics as
a conceptual tool that students would use to remember and interpret
what Economics is.
As a semantic tool, one may call any particular theory as Economic
theory. Thats up to the person.
But using that very term as a conceptual category that signifies
something real in the world [an economic ideology/school of thought
such as Keynesian Economics] is problematic and results in various
problems are was explained briefly above. Thats the aim of this paper. It
doesnt object to the usage of the term Economics for a particular
theory, but objects thepresentation of this general term as representing
a specific concept/theory.
General term
['Economics']
Directy represents without
explicitly stating
A specific concept of real-world
['Neoclassical Economics']
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2) Theres no diversity in Economics, what exists today in Economics
is the truth.
Thats a typical Whiggish19 view of Economic history and Economic
reality. Such a view believes that whatever theories are there today arethe ultimate results of all past developments and
theories/debates/criticisms in Economics. This means whatever is taught
today is the latest and most modern set of ideas which are a result of
hundreds of years of development of this subject. This paper is not
meant as a full-fledged response to such a view about Economic
History. Still, it may be noted that a typical Whig history of economic
history shall inevitably result into what we have called an Absolute view
of Economics. The problems associated with it were discussed abovethroughout this paper. Hence, wont be repeated here again.
3) This is an issue of History of Economics.
Not at all. The question here is not supplementing a history of
Economics with the same idea- Economics now means whatever is
taught to you in your textbooks. A History of Economics given with an
Absolutist view [we called it Absolute for simplicitys sake], shall reinforce
a linear development path of Economics. What this paper aims is topromote a Relative understanding of Economics, the belief that every
Economic theory can and must be understood in respect to the
conditions under which it is composed and applied. History of
Economics can be taught even while maintaining the status quo.
19Kliman A. Reclaiming Marxs Capital: A Refutation of the Myth of inconsistency. Chapter 1. Pg. 9.
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11. Conclusion
This paper was meant to focus on a very unique and specific aspect of
the subject of Economics as students of XIth and XIIth face in their
schools and coaching institutes. It pertains to the introduction of theseyoung minds to something called Economics. As we saw, it can never
be simply Economics. In the end, it will always be a particular school of
thought, a particular set of ideas. G.S.E.B., I.C.S.E., I.B. and C.B.S.E.
all teach Neoclassical and Keynesian economics.
What these are? How to understand them? Why are only these
types/schools of Economics taught? Is it a large-scale brainwashing?
What are the consequences of teaching a particular type under a
general name [Economics]? Should the textbooks make it clear what
type of Economics theyre going to explain? How should students deal
with this fact? Is it really important to stress on this fact? Can Economic
theories be right or wrong? Can there be better Economics that what is
taught in school-curricula? Why this authors talking about this issue
only? Is everybody conformist? What is the way out? What are the
various schools of thought? What to study if not textbook economics?
This paper doesnt wish to provide any solution to the problems raisedabove. It only aims to bring such a problem to students and teachers
attention.
To conclude, for more advanced readers especially, we can summarize
the fallacy that is committed based on the above discussion as below:
[Refer the next page]
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These are some of the questions that we reach based on our above
inquiry. Students must deliberate on this. Talk with your teachers inschool, coaching institute or other people in this discipline. If you do not
find satisfactory answers to these questions elsewhere, you can contact
this author.
Epistemological fact
'Economics' as a Generalterm
Ontological fact'Economics' as a real worldsubject irrespective of its
specific form and type
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12. References
Following works were used as primary references for this paper. This
paper is not this authors final view on the issue, but was kept
deliberately simple to be accessible to the targeted students. Advancedstudents and readers can contact the author personally though social
media or other mediums. [In order of citations throughout this paper]
1 Freeman, Alan. The Economists of Tomorrow: The Case for a
Pluralist Subject Benchmark Statement for Economics. Association for
Heterodox Economics, London.
2 Freeman, A. and Kliman.A. Beyond Talking the Talk.2008.
3 Meek, Ronald. Studies in the Labour theory of Value.1973.
4 Blaug, Mark. Economic Theory Retrospect.1984.
5 Stigler, George. The Theory of Price.4th Ed.
6 Marx, Karl. Capital, Vol. I.MIA edition.
7 Sweezy, Paul. The Theory of Capitalist Development.1962.
8 Gordon, David. The Philosophical Contributions of Ludwig vonMises.The Review of Austrian Economics Vo1.7, No. 1: 1994.
9 Murphy, Robert. Lessons for Young Economists.2010.
10 Basu, Kaushik. Beyond the Invisible Hand: Groundwork for a New
Economics.Princeton University: 2010.
11 Kliman, A. Reclaiming Marxs Capital: A Refutation of the Myth of
Inconsistency.2007. Chapter 1, Pg. 9.
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About this papers author
Kindly utilize the following links to know more about Mr. Bhagirath. P.
Baria.
A. Blog:
www.rathandeconomics.blogspot.in
B. LinkedIn Profile:
http://www.linkedin.com/in/bhagirathbaria
C. Contact numbers:
9824323934
8866249667
D. E-mail id:
E. Economics by Bhagirath Baria:
https://www.facebook.com/pages/Economics-by-Bhagirath-
Baria/495989447135348
F. Higher Learning Commerce Institutes facebook page:
https://www.facebook.com/higherlearningclasses?fref=ts
G. Academia.edu profile/page:
https://independent.academia.edu/BhagirathBaria
To download this paper visit:
https://www.academia.edu/6451729/An_Introduction_to_Multiplicit
y_in_Economics[Link might be updated occasionally]
-Note: Many more papers including this one are soon going to be
uploaded on my academia.edu account. Those will be freely
available for interested readers.
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