Dr Grzegorz Hoppe

About economy

Personally, I think that economics should be called the science of human action. Of course, some might then say that what we’d be studying is praxeology. For me, though, breaking up the sciences results only in the likelihood of a lack of coherence in sciences that are related. Because if we think about it, every human activity also has some kind of economic aspect to it. Whether we spend our time earning or spending money, or how much time we split be-tween these activities, everything has economic consequences, both for the person making these decisions and for the whole of his or her environment. I also think that there’s too much mathematics in modern economics. Human action is after all probabilistic, and most people also make decisions completely differently from the mathematical distribution of the probabilities of an event occurring. If they didn’t, there would be no lotteries; no one would ever buy a ticket or make a bet. Such human behaviour clearly demonstrates that the mathematization of economics is doomed to failure. I’m not saying that mathematics is unnecessary; on the contrary, mathematics is essential, but primarily to describe past events and to create scenarios for possible future events, mainly macroeconomic. However, it’s no good for describing human action as such.