Economics and the Nobel Prize: Debunking the Myth
No, economics does not deserve a Nobel Prize. The Nobel Prizes are awarded in Physics, Chemistry, Physiology or Medicine, Literature, and Peace. There is also the so-called 'Nobel' award from the Swedish National Bank, which is not an official Nobel Prize. While economics is often considered a 'sham' science and attributed to the absence of scientific rigor, its practical impact and the contributions of great economists cannot be denied.
Economics: A Sham Science?
Ever since the establishment of the Nobel Prizes, the inclusion of economics has been a subject of debate. Nobel Prizes are reserved for significant contributions in hard sciences such as physics, chemistry, and medicine. Despite the focus on economic theories and models, economics has never achieved the same level of scientific rigor. This is mainly due to the inherent complexity and impossibility of conducting rigorous studies in human and macroeconomic subjects with mathematical precision. However, it is evident that economics has produced real-world impacts and solutions that affect people's lives in a profound manner. Economists such as Milton Friedman, John Maynard Keynes, and Ben Bernanke have been at the forefront of policies and theories that have transformed the global economy.
Economics in the Real World
The fact that economics attracts the finest and smartest scholars in history, and is one of the most marketable degrees in prestigious educational institutions, speaks volumes about its practical significance. Even if economists lack the scientific rigor often associated with natural sciences, their work has tangible and impactful results. Many celebrated recent works in hard sciences are disconnected from practical applications, making them less relatable to the general public. In contrast, economics remains relevant and accessible to everyone, as its concepts are directly applicable to everyday life.
The Nobel Prize and Economics
There is a common misconception that there is a 'Nobel' prize for economics. However, the Swedish National Bank's award is not an official Nobel Prize. Nobel himself did not include economics in his will, and it is often referred to as the Nobel Memorial Prize in Economic Sciences rather than the Nobel Prize in Economics. The Nobel Committee's criteria for the prizes include contributions to humanity, and they do not award for scientific discoveries alone but for those that have societal impact. For instance, Albert Einstein never received a Nobel Prize for the theory of relativity, as it was deemed too theoretical and far removed from practical applications. Only later, with the advent of GPS, did the practical significance of his work become evident, leading to a retrospective acknowledgment.
Conclusion
Economics, while not a pure science, is a vital and practical field that deserves recognition and respect. Its lack of official Nobel Prize recognition should not diminish its importance or the impact of its contributors. Whether labeled a 'sham' or a 'phony' science, the field of economics continues to evolve and contribute to the betterment of society.