Thursday, March 01, 2012

Positive

I think a reasonable separation can be made between positive and normative issues in economics, I just think in practice a lot of economists have embraced faulty distinctions. It is actually a normative statement, not a positive one, to claim that rising GDP is "good." That something allows for a potentially pareto improving redistribution doesn't make value-free approval possible, especially if pareto improving redistributions never actually happen.