Call Economics Solve Practical problems
The economists gelled ally hold the view that it is the function of Economics to solve Local problems. The economic these primes may be very important and the economist’s opinion is of great value. But 110 problem can be solved n economic grounds alone, political and moral.
We do not quite agree with this view. No economist has lived up to this idea l. Adam Smith Ricardo, Malthus and, in our times. the late Lord Keynes himself. have all act interested in the problems of their time, In the words of Fraser, Is a poor prolixity fish. According responsible for its separation.
Limitations of Economics. It is necessary, however, to emphasis the limitations which the science of Economics necessarily suffers. Apart from the fact that Economics cannot predict the course of future events since its laws lack definiteness. it must be recognized that economic analysis by itself cannot provide answers 10 questions that in individual or social conduct. It can furnish no magic formula by which schemes of social betterment can be tested nor a sovereign remedy to economic ills.
Bowling observe is not for, the business of the economist as such to decide whether large armaments are necessary, whether a marriage is successful, a religion efficacious, or oven whether a law is wise. The attention of the directed principally to the area in which values can he measured in numerical terms, an~ consequently he cannot claim jurisdiction over the great legion of valuation where such imponderable realities as friendship, patriotism, sincerity and loyalty arc Cascades. In all political questions such imponderable valuations are of vital importance, and economic analysis is an important witness, hut is It is, therefore, necessary to bear in mind the limitations of Economics when all economist is called upon III tackle a practical problem.