Lars P. Syll has great new post up on his blog, accessible below.
I highly recommend reading before commenting. My question to the forum is not whether or not Lars is right or wrong. I think he produces a pretty air-tight argument. But rather, given the hand in glove relationship between economic predictions and political policy: Is the failure of the economists to gloss over such an important scientific axion a feature, or a bug?
Is the old saw that economists function in a capitalist society more as theologians than scientists, on the balance true? Put another way, is there evidence that the Neo-classical economists understand the problem that rampant deductivism, divorced from practical application to reality, is nonsense -- but persist in the face of said knowledge for financial and political gain?