"Mattei argues that the shift towards economics as applied mathematics, almost a sibling of the natural sciences, is not an ‘evolution’ of the discipline. The expulsion of history from economics was no accident, because history reveals what mathematics hides: the assumptions.
The focus of neoclassical economics on models instead of history was born at a time many were heavily contesting capitalism (the early 20th century), and successfully finding alternatives. By removing history and depoliticising economics (which since then has no longer been called political economy), capitalism and the austerity measures that support it are frozen and made unchangeable.
History allows us to call out this ‘purity’, and prod at the assumptions underpinning so much of modern economic theory. Furthermore, an economist that takes a step back from their models and considers the context in which they work will be a better economist. This is because economists are not disinterested observers, immune to political and social questions. Mattei acknowledged this head-on in her talk: “I do not live above the economy, merely observing it. Rather, like all citizens, I live within it.”
Economics has in recent years restrained our sense of possibility. Any proposition, even by serious academic heterodox economists, is dismissed as being unfeasible or unrealistic. However, there are no ‘eternal truths in economics’. Those that appear to be so, enforced by political power, snobbery, and high-brow ‘intellectualism’, can be debunked.
Here is my conviction: economics can be a force for change. Not in City of London skyscrapers or Whitehall offices, but through a new, popular economics that actually addresses the issues we face day-to-day. In Oxford, a group of students is trying to enact this new way of thinking about economics, centering history and recognising the inherent political nature of economic knowledge.
Rethinking Economics Oxford (REO) relaunched this term, with Clara Mattei being their first speaker."
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