Ok, sure, you can touch money. But money isn’t economics, even though lots of people think it’s all economics is about. (Let’s clear that up here and now: money is just an economic tool and nothing more. Economics exists without money: think barter.)
So what is economics? A lot of universities with tenured economics professors say economics is a science. Yet calling it a science is a recent development – Adam Smith considered it part of moral philosophy. Is it possible that calling economics a science that employs the same methods as physics, chemistry or biology creates some confusion as to what economics really is?
The fact is, economics isn’t a science in the modern experimental sense of the word, and here’s a simple way to prove it: if God had never created man, would physics, chemistry, and biology still exist? Yes. How about economics? Well… No. After all, if God never created man, there would be no people to make choices and steward the world.
And this is our first clue as to what economics really is. [Read more...]