The Vices of Economists-The Virtues of the Bourgeoisie

Rating:
Summary: What's Ailing Economics?
Review: A rarity, a lively and readable critique of economic thinking. McCloskey is an economic historian trained in the Chicago school and a pioneer in the study of economic rhetoric. A stylish and witty writer, well versed in technical matters but capable of writing lucidly for a non-technical audience, as demonstrated here, McCloskey is perhaps best known for the sex change operation which took place during the visiting professorship at Erasmus University in Rotterdam, where the lectures which this book reworks were given. In this volume McCloskey names the three principle vices of modern economics, all of which found their current form in the 1940s. They are: (1) the (Lawrence) Kleinian vice of mistaking statistical significance for scientific significance; (2) the (Paul) Samuelsonian vice of elevating blackboard proofs and other mathematical, but not necessarily scientific, values, and (3) the (Jan) Tinbergenean vice of social engineering, which presumes to know more than it can and threatens to infringe on individual freedom. In a brief epilogue, McCloskey endorses the adoption of "bourgeois" virtue as a counterweight to these errors. She recommends that Prudence -- the virtue that gave rise to economics -- not be seen in isolation. Economists, she says, should follow the example of Adam Smith and reconcile Produce with Justice and Temperance.

Rating:
Summary: What's Ailing Economics?
Review: A rarity, a lively and readable critique of economic thinking. McCloskey is an economic historian trained in the Chicago school and a pioneer in the study of economic rhetoric. A stylish and witty writer, well versed in technical matters but capable of writing lucidly for a non-technical audience, as demonstrated here, McCloskey is perhaps best known for the sex change operation which took place during the visiting professorship at Erasmus University in Rotterdam, where the lectures which this book reworks were given. In this volume McCloskey names the three principle vices of modern economics, all of which found their current form in the 1940s. They are: (1) the (Lawrence) Kleinian vice of mistaking statistical significance for scientific significance; (2) the (Paul) Samuelsonian vice of elevating blackboard proofs and other mathematical, but not necessarily scientific, values, and (3) the (Jan) Tinbergenean vice of social engineering, which presumes to know more than it can and threatens to infringe on individual freedom. In a brief epilogue, McCloskey endorses the adoption of "bourgeois" virtue as a counterweight to these errors. She recommends that Prudence -- the virtue that gave rise to economics -- not be seen in isolation. Economists, she says, should follow the example of Adam Smith and reconcile Produce with Justice and Temperance.

Rating:
Summary: Profound and Important
Review: Deirdre McCloskey's little volume, The Vices of Economists-The Virtues of the Bourgeoisie, is a gem. Nothing less. Although it is short, it bulges with deep and important insights; although it is aimed principally at an audience of professional economists, it is relevant for anyone interested in the scientific method as well as policy; and although it is written by a professional economist, its prose is splendid.

The chapter of the book that strikes me as most important is Chapter 4, "The Arrogance of Social Engineering." The material here isn't simply another sermon on the complexity of the economy and society. It is, instead, a compelling explanation of why economists who make specific predictions about the future ("The price of tech stocks will rise over the next month" or "Megacorp's price-cutting will result in monopoly power") truly should be ignored.

And her conclusion! That is not to be missed. I especially like, and appreciate, her wise words of advice: "Know above all that you do not know."