Although the relation between Economics and Biology is not that apparent at a first glance, both sciences have found overlapping points along their own history. It was Thomas Malthus’s theory about population growth that in some way inspired Charles Darwin to come up with his famous and bedrock theory of evolution through natural selection. More recently, a discussion has been sparked about whether Darwinian ideas can help Economics understand better human behavior. This is because much of the economic theory is based on a stylized conception of man, homo economicus, who thinks and acts rationally, but this stylization ultimately leads to false predictions and poor explanations of historical data. An example of this is the Capital Asset Pricing Model (CAPM), which fails to predict economic crises and explain stock market bubbles.
Therefore, there is a need to improve these outcomes by including tools from other sciences, such as Biology. Darwinism may seem as a plausible tool to boost the scientific character of Economics. In order to analyze this possibility, this paper considers Darwin’s theory that is embedded into Quine’s naturalized epistemology. In addition, a short description of how such ideas blend is presented first, and then a response to the question of whether this possibility of incorporating Darwinian ideas is true for Economics as a science.
Willard Quine took some neo-Darwinist ideas as a scientific resource for his naturalized epistemology. The aim was to illustrate how epistemology could be naturalized, without falling into relativistic or radical-naturalist views of science. With neo-Darwinism in the scene, it is easier to understand why humans understand some of the irregularities of the world and even so...
... middle of paper ...
...j Boom
Dosi. G, and Nelson, R.R. (1994). An Introduction to evolutionary theories in economics. Journal of Evolutionary Economics, 4, 153-172. Retrieved December 2nd, 2011 from jstor.org
Fama, E.F. and French, K.R. (2004). The Capital Asset Pricing Model: Theory and Evidence. The Journal of Economic Perspectives, 18, 3, 25-46. Retrieved December 2nd, 2011 from jstor.org
Hirsch, P., Michaels, S. and Friedman R. (1987). “Dirty Hands” versus “Clean Models”: Is Sociology in Danger of Being Seduced by Economics? Theory and Society, 16, 3, 317-336. Retrieved December 2nd, 2011, from jstor.org
Simon, H.A. (1991). Bounded Rationality and Organizational Learning. Organization Science, 2, 1, 125-134. Retrieved December 2nd, 2011, from jstor.org
Smelser, N.J. and Swedberg, R. (1996). Handbook of Economic Sociology, p.1-25. Princeton: Princeton University Press
In Charles Darwin’s life he had helped make a significant advancement in the way mankind viewed the world. With his observations, he played a part in shifting the model of evolution into his peers’ minds. Darwin’s theory on natural selection impacted the areas of science and religion because it questioned and challenged the Bible; and anything that challenged the Bible in Darwin’s era was sure to create contention with the church. Members of the Church took offense to Darwin’s Origins of Species because it unswervingly contradicted the teachings of the book of Genesis in the Bible. (Zhao, 2009) Natural selection changed the way people thought. Where the Bible teaches that “all organisms have been in an unchanging state since the great flood, and that everything twas molded in God’s will.” (Zhao, 2009) Darwin’s geological journey to the Galapagos Islands is where he was first able to get the observations he needed to prove how various species change over t...
Kendall, D., Linden, R., & Murray, J. L. (2008). Sociology in our times: The essentials (4th Cdn
Michael Ruse, The Darwinian Revolution, pub. 1979 by The University of Chicago Press, Chicago 60637
The concept of Social Darwinism was a widely accepted theory in the nineteenth-century. Various intellectual, and political figures from each side of the political spectrum grasped the theory and interpreted it in various ways. In this paper, we will discuss three different nineteenth-century thinkers and their conception of Social Darwinism. The conservative, Heinrich von Treitschke, and liberal Herbert Spencer both gave arguments on the usefulness of competition between people on a global scale. The anarchist, Peter Kropotkin, refuted the belief of constant competition among members of the same species and emphasized mutual aid.
Although the authors have referred to the book as a different type of book, outside the main role of economics, it is really the opposite: it is a book that gets to the root and the origin of economic theory. Again, it raises questions about what happens in society, analyzing peoples motivations based on data and the economic rationality of individuals, and drawing conclusions which are often considered counterintuitive or different than established knowledge. In fact, Steven Levitt ‘s academic career has been marked by success, and he has been recognized by numerous awards. This shows that when economics is shown in a way understandable to the public, the result can be a big bestseller.
Gaynor Ellis, Elisabeth, and Anthony Esler. ""New Economic Thinking"" World History: The Modern Era. Prentice Hall. 186. Print.
The theory of Social Darwinism stems from the idea that the human species can progress by following the principal of Charles Darwin’s natural selection, in which he states that plants and animals that can adapt to changes in their environment are able to survive and reproduce, while those that cannot adapt will die. Social Darwinists applied this biological concept to social, political and economic issues, which created the “survival of the fittest” attitude, as well as competition and inequality between social groups. This paper will discuss some of the proponents of this theory, the results of their interpretation and application of the theory, and why this theory no longer holds a prominent position in Anthropological theory.
Hutcheon, P.D. Leaving the Cave: Evolutionary Naturalism in Social Scientific Thought. Ithaca: Wilfrid Laurier University Press, 1996.
Heilbroner, Robert. "The Economic Problem." The Making of the Economic Society. Englewood Cliffs: Prentice Hall, 1993. pp. 1-15
ABSTRACT: My aim is to raise two points against naturalizing epistemology. First, against Quine’s version of naturalizing epistemology, I claim that the traditional questions of epistemology are indispensable, in that they impose themselves in every attempt to construct an epistemology. These epistemological questions are pre- and extra-scientific questions; they are beyond the scientific domain of research, thus, for a distinct province of inquiry. Second, I claim that no naturalistic account can be given as an answer to the traditional question of justification. I take Goldman’s and Haack’s accounts as examples to support my claim. The traditional demand of justification is to start from nowhere. Naturalizing justification is to start form somewhere. The two approaches are, thus, necessarily incompatible with each other. So, the accounts given by the naturalists are not answers to the traditional problem of justification. To remain compatible with themselves, the naturalists should have conceded that the problem of justification is illegitimate or incoherent. The fact that they did not I take as additional evidence to support my claim that the traditional questions of epistemology are indispensable: they impose themselves and are, thus, hard to eliminate.
Throughout time, the human knowledge of economics has evolved and expanded. The discovery of this knowledge has been expedited, in many cases, due to a handful of brilliant minds. The work that these minds have contributed has helped to progress the human race, and helped further our understanding of economics. William Petty is one of those minds. Sir William Petty was an English economist, physician, and surveyor whose resume would impress even the most qualified. Petty began his life at the bottom of the barrel and worked up to the top, even becoming a knight along the way. William Petty’s influences were rooted in the teachings of Thomas Hobbes and Francis Bacon, and his views on natural law are clearly reflected in his work. Sir William
Most disputes, especially political ones, center around one idea: whether following the precepts of the past or looking to the future is best for a society. In the mid-1900s, Charles Darwin looked toward the future with his own ideas about the world and brought the longstanding argument to the forefront. Jerome Lawrence and Robert E. Lee’s Inherit the Wind portray how a small town’s myopic view and ignorant attitude displaced it from the world and resulted in a freethinking man’s incrimination.
Riddell, T., Shackelford, J., Schneider, G., & Stamos, S. (2011). Economics: A Tool for Critically Understanding Society (Ninth Edition). Boston, MA: Pearson Education, Inc.
This first chapter starts with Darwin’s ideas of species, developing this new theory “on the origin of species”.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.