No merit to carping on economic theories
The New-Age ones have actually been tested out in the real world and do work
Third, empirical economics is becoming more directly and immediately relevant to policy matters. A popular new style of research, often called quasi-experimental economics, evaluates the results of policy experiments like Seattle’s recent minimum wage hike or European countries’ acceptance of refugees.
Clear answers
Instead of relying on complex theory or unrealistic assumptions, quasi-experimental studies give immediate clear answers about the results of government action. That won’t make economic theory obsolete, but it vastly increases the speed with which economists can give policymakers reliable feedback.
Finally, even if the economics profession once leant toward free-market ideology, that is no longer the case. Not only are today’s star economists likely to fall on the left side of the political spectrum, but economists in general are more pro-government than the general public on most issues.
So the caricature of economics as the priesthood of free markets is way out of date. Free-market writers and think tanks may still use simplistic old ideas to justify laissez-faire policies, but among academics, nuance, moderation and complexity prevail. Meanwhile, though ideology probably does bias economists’ results to some degree, evidence shows that the degree of bias is modest.
Instead of trotting out the standard boilerplate critique of economics, pundits should be encouraging and publicising the positive trends. The image of economics as a hidebound, unchanging discipline is a myth.
The field has its problems, sure. There’s still a long way to go. But academics are working hard to make econ more scientific — to create reliable, applicable theories, to gather and understand new data, to provide rapid, useful feedback to policymakers, and to gain a more balanced and refined understanding of the economy. Maybe it’s us writers, not academic economists, who need to catch up with the times.