RE: Re: Re: re: What is wrong with the mainstreameconomics?

[Eric Nilsson]

Ken writes,   >Surely when u come to practical applicatiions in social welfare theory such as cost-=benefit analysis not only are utilties measured they are measured in dollar terms.   Even in applied micro you need not posit underlying utility functions: you can still use preference rankings. But this is not really a major issue.   More to the point, within the logic of NC theory ONLY PO moves are valid. The claim that benefits > costs (with no compensation occurring) indicates a good move is _invalid_ by the rules of the game of NC economics.   But why then is such a move always _seen_ as valid by most economists? First, NC economists are generally unaware that this is invalid by their own rules of the game. Second, they want to provide policy guidance (so they seem to be doing important stuff) even at the cost of theoretical incoherence. Third, they have been taught that this is an okay move to make and, well, heck if others do it and if I need a job I’m not about to sacrifice myself on an alter of theoretical purity.   Eric embattled defender of the NC faith  ;>)