The Future of Economics: A Question Worth Pondering

Lately, I've found myself contemplating the trajectory of economics. This expansive field delves into resource allocation, consumer behavior, market dynamics, and the fluctuations of global economies.

While I initially viewed economics as a domain brimming with potential, recent reflections have led me to question its future viability.

In a recent interview, Steve Levitt, co-author of Freakonomics, shared his thoughts on this matter. He expressed concern that the discipline may become increasingly insular and lose relevance. Levitt stated:

…my prediction is that economics is going to become less and less relevant, more and more inwardly focused. And honestly, I wouldn’t be that surprised if economics ends up going the way of anthropology or sociology, which were once prominent and considered vital disciplines, but have since diminished in importance due to their arcane focus.

Levitt's unease stems from his belief that the field is prioritizing theoretical constructs over practical insights. He remarked:

…the rewards [in the field of economics] are not there for people who have practical insights are not rewarded greatly in the profession. The rewards come to people who make innovations, theoretical innovations, right? Who come up with new techniques, who do hard stuff that other people can’t do.

In essence, Levitt suggests that the field has become too self-congratulatory, shifting away from generating actionable solutions for society towards an inward focus on theoretical advancements.

The more I reflect on Levitt's perspective, the more I find it compelling.

At its essence, economics should address the practical challenges posed by limited resources, centering on real-world issues of supply and demand.

While theoretical aspects are undeniably significant, an overemphasis on them risks rendering economics esoteric and detached from the broader world, limiting its relevance to only economists.

To revitalize the discipline, economists must concentrate on practical applications. What global supply and demand challenges can economics tackle? Which scarcity issues can be effectively addressed through economic strategies? What incentives can be designed to promote peace and cooperation between nations? These are the inquiries that should guide economists.

What are your thoughts? When considering the field of economics as a whole, what comes to mind?

Do you foresee a promising future for this discipline, or do you believe it may devolve into yet another obscure social science, relevant only to a select few researchers while remaining disconnected from the general populace?

If you found this discussion enlightening, I invite you to explore some of my other articles! I welcome your feedback and will make every effort to respond to your comments.

Aaron Schnoor

Chapter 1: Insights from Experts

In this chapter, we explore the perspectives of economists regarding the field's future.