2.3 Why Economists Disagree

2.3 a. Differences in Scientific Judgement

Economists often disagree about the validity of alternative theories or about the size of the effects of changes in the economy. ^[24]

Example: An economist may predict that the economy will grow in the next two fiscal quarters based on the market indexes, interest rates, inflation/deflation rates, etc. while another economists may disagree based on other indicators. ^[24]

^{Economic Schools of Thought [25]}

2.3 b. Differences in Value

Different economists may advocate very different economic policies because they have very different expectations on the likely effects of specific policies- even if their ultimate policy objectives are much the same. ^[26]

Example: Propositions of social welfare relies more on value judgements as people have different choices, needs and ethical values. ^[27]

^{Value Judgement [28]}

2.3 c. Perception vs Reality

The general perception is that economists disagree in an excess amount. In reality economists agree about a lot of things, and in many cases they do so with a high degree of certainty. ^[29]

Example: Although government interventions is a debated topic, economists strongly agree that the bank bailouts in 2010 lowered the unemployment rates. ^[29]

^{Economists Agree [30]}