Although economics is sometimes referred to as the “dismal science,” it is unique in that it lies between social science and scientific research.
Economics is often regarded as a science subject because it uses scientific methods to study human behaviour and decision-making when it comes to the production, distribution and consumption of goods and services.
Like other sciences, economics uses data and evidence to make predictions and test hypotheses. It also relies on quantitative methods such as statistics and mathematics to analyse trends and predict outcomes.
So while economics is not a hard science like physics or chemistry, it does use scientific methods to understand the world around us.
In the social sciences, a new perspective has emerged in recent years. Although it arose in the field of economics, it has attained popularity in other academic disciplines as well as the nearby social sciences.
Furthermore, because it analyses, interprets, and investigates how individuals behave in the financial environment, economics is comparable to a social detective. It also attempts to forecast potential financial shocks and how they can affect the whole community.
In this post, we will discuss the two main arguments why economics is a social science.
1. Understanding How People Decide with ‘Not Enough Stuff’ in Economics
The core of economics is the study of how individuals make decisions when their resources are scarce.
In actuality, there will always be good days and bad days, but, it is worthwhile to invest the time to understand what decisions we make when we are insufficient particularly when it comes to money.
It also examines the decisions made by individuals, communities, and societies in contrast to science which studies objects like rocks and stars. The concept of scarcity holds that there aren’t enough resources to fulfil all of our desires and meet all our needs.
Behavioural economics is a branch of economics that studies the reasons behind our decisions. Economists use concepts like reasonableness, enjoying specific things, and finding things useful to understand how people make decisions.
Economics evaluates not just the decisions made by individuals but also the combined behaviour of entire populations. It examines how people’s behaviour have an impact on how societies function, much like a social microscope.
2. How Rules and Culture Affect ‘Money Stuff’
Because economics examines how laws and cultural norms influence how people manage money, it is also a social science.
Our financial situation is greatly influenced by laws, property rights, and other regulations as well as by the way we organise things. By upholding a just legal system, ensuring that contracts are followed, and defending rights, good laws contribute to economic growth. Improper or dishonest regulations have the potential to impede progress, perpetuate poverty and increase the cost of necessities and aspirational comforts for everyone but the “untouchable few”.
Economics also considers cultural factors that influence money use. Our financial decisions are influenced by laws, norms, traditions, values, and our perception of what is reasonable.
This means that economists look at more than just numbers; they look at how people and their cultures shape our money world.
Conclusion
Economics is a social science because it examines how laws and customs impact our financial environment and helps us understand how people make decisions in periods of scarcity. It’s a tool that helps us understand the complex ways in which individuals and communities interact; it’s simply not about numbers. It is crucial to view economics as a social science, particularly when attempting to develop intelligent responses to the significant financial problems that we all confront.
Click here, to read the short notes on the scope of Economics.
Researched by Adejoke Toye
