I was reading The Worst Enemy of Science which reviews Paul Feyerabend, 
another great teacher I forgot to mention. So tracking down some of his 
friends I got to Imre Lakatos who was also a philosopher of science and 
specialized in mathematics.

Then I came across this:

``The Milton Friedman neoclassical economics case study

In August 1972, a case study of the methodology of neoclassical economics by 
Lakatos's London School of Economics colleague Spiro Latsis published in The 
British Journal for the Philosophy of Science found Milton Friedman's 
methodology to be 'pseudo-scientific' in terms of Lakatos's evaluative 
philosophy of science, according to which the demarcation between scientific 
and pseudo-scientific theories consists of their at least predicting 
testable empirical novel facts or not.[10] Latsis claimed that Friedman's 
instrumentalist methodology of neoclassical economics had never predicted 
any novel facts.[11]

In its defense in a three-page letter to Latsis in December 1972, Friedman 
counter-claimed that the neoclassical monopoly competition model had in fact 
shown empirical progress by predicting phenomena not previously observed 
that were also subsequently confirmed by empirical evidence.[12] The example 
he gave was a prediction of Chamberlain's monopolistic competition model 
that "the standard explanation for the Standard Oil monopoly was wrong", 
which he said had been theoretically predicted by Aaron Director, his 
brother-in-law, and empirically confirmed by Magee. But he failed to 
identify exactly what novel economic phenomenon was thereby positively 
predicted and confirmed. Lakatos invited Friedman to submit a discussion 
note based on his December 1972 letter to Latsis for publication in a 
symposium on the issue of the scientific status or not of neoclassical 
economics,[13] but Friedman never took up the invitation.

Three years later, in 1976, Friedman was awarded the Nobel Prize for 
Economics "for his achievements in the fields of consumption analysis, 
monetary history and theory and for his demonstration of the complexity of 
stabilization policy".[14] Friedman's own predictions of an accelerating 
rate of inflation due to attempts to use expansionary monetary policy in 
order to attain an unrealistic employment target, as described in his Nobel 
lecture[15] are cited by others as an example of a novel phenomenon 
successfully predicted by neoclassical economics.[16] This research 
ultimately led to a break down of the popular belief in economics in the mid 
20th century that there was a long-run trade-off between unemployment and 
inflation...''

http://en.wikipedia.org/wiki/Imre_Lakatos

This morning I watched several videos of Krugman hawking his latest book, 
End this Depression Now. It was nice to hear part of his prescription was to 
send money to the states to hire back all the civil service people like 
teachers they have laid off.



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