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Well, pure mathematic models also don't have any real-world meaning, and no predictive power with regard to the real world events. Still, nobody thinks that the analytical proof of the Pythagorean theorem is somehow inferior to the empirical one (involving multiple reproducible experiments that measure sides of the actual triangles drawn on a piece of paper with a ruler). We are content with mathematics being consistent within itself. However, if we (1) add certain assumptions about, say, physical laws, the structure of the reality, the way we can observe it, (2) propose a reasonable way to map some aspects of the world to our mathematical models, (3) calibrate the result according to the future experiments/observations -- we might get a quite useful natural science like physics or astronomy. The pure math will serve only as a low-level tool. That's how the Austrian economists see the place of the pure economics theory: just an analytical tool to be used along with the other disciplines/sciences for solving real-world problems. For example: Austrian economists believe that it can be deduced from the first principles/axioms that enforcing minimal wage above existing market wages results in involuntary unemployment (most of the non-Austrian economists also believe this is the case, although their methodological basis is different). Assume there was a policy act that included, among other things, raising the minimal wage. A year passed, and it so happened that there have been changes in the economy indicators, including lower unemployment rate. The act was not the only thing that happened in that time; lots of factors may have contributed to the outcome. An Austrian researcher will definitely not count raise-the-minimal-wage factor as contributing in favor of the lower unemployment rate; the factor will be counted against the lower-unemployment-rate outcome, and will require further explanations, what other factors have outweighed its effect. Using math (well, formal systems/notations) does not guarantee your whole research about the real world is correct, but it establishes a baseline for consistency and rigorous reasoning. It's the same with basic economics. (My formal education was in mathematics / CS. I study economics, epistemology etc. only as a hobby.) |