Economics is not a science; it is a quasi-religion: part

In the insightful words of Howard Jacobson, "Economics is not a science; it is a quasi-religion: part superstition, part mystique, part sentimentality. Bankers dream like other men, the only difference being that when their dreams turn to nightmares, we all lose sleep. There can be no trusting the muttering of any prelate when it comes to money." Here, Jacobson lays bare a truth that speaks to the heart of economics as a practice, a field of study, and a force that governs our lives. He suggests that economics is not, as often claimed, a true science, but something much more fragile and unpredictable—much like a religion rooted in belief, subject to fantasies and uncertainties.

The first element of Jacobson's critique is his assertion that economics is more like a quasi-religion than a hard science. In the same way that religious leaders are often revered for their supposed connection to greater truths, economists and bankers are seen as authoritative figures on matters that govern the wealth of nations and the lives of individuals. Yet, much like a religious figure’s ambiguous pronouncements, their insights into economic systems are frequently based not on certainties but on faith in models, assumptions, and forecasts that often fail in the face of reality. This is especially evident during times of economic crisis, when the predictions of experts fall apart and the global markets plunge into disarray. Jacobson paints a picture of economics as an unpredictable and flawed endeavor—a system that, while possessing some degree of logic, also operates within the realm of superstition and mystique.

Consider the ancient wisdom of the oracle of Delphi, who was revered for offering divine insights into the future, despite the uncertainty of the predictions. Just as the oracle's words were taken as gospel, so too are the declarations of economists often treated with an almost religious reverence, even when their predictions turn out to be fallible. The gods of ancient Greece were believed to shape the world through their unpredictable whims, just as the financial gods of today—the central bankers, stock traders, and economists—are often celebrated for their ability to interpret the economic forces at play, even though their knowledge is, at best, incomplete.

The second part of Jacobson’s quote emphasizes the danger of trusting the words of bankers and economists. "Bankers dream like other men, the only difference being that when their dreams turn to nightmares, we all lose sleep." This statement holds a profound lesson about the consequences of greed and ambition. Bankers, who often view the financial world as a grand game of risks and rewards, may dream of wealth and power, but when those dreams turn to nightmares—such as during the 2008 financial crisis—it is the common people who suffer the most. It was not the bankers themselves who lost their homes or jobs during that period, but the millions of innocent lives whose futures were crushed under the weight of failed policies, bad investments, and unchecked greed.

The 2008 financial crisis serves as a modern-day example of how the dreams of a few can turn into nightmares for the many. In the pursuit of profit, many bankers took risks that ultimately destabilized the entire global economy. Yet, despite the widespread damage, the perpetrators were often shielded from the full extent of the consequences, while the general public was left to deal with the aftermath. This illustrates Jacobson’s point that while bankers may dream, it is not their sleep that is disturbed when their dreams fail, but the lives of everyone else. This stark injustice is a testament to how power and wealth can become divorced from responsibility.

In his final remark, Jacobson warns, "There can be no trusting the muttering of any prelate when it comes to money." Just as a religious leader’s words must be scrutinized for truth and sincerity, so too must we question the words of those who wield influence in the world of finance. In the ancient world, priests often controlled not just the spiritual lives of the people, but also the economic systems that governed their lives. They were seen as conduits to divine knowledge, but their motives were not always as pure as they seemed. Today, we must recognize that those who control the flow of money—bankers, economists, and financiers—are no different. They too must be held accountable for their actions, and their words should be approached with caution, lest we fall prey to the same blind faith that has led civilizations into ruin.

The lesson we can take from Jacobson's words is clear: we must approach economics not with the naive faith that it can be predicted with absolute certainty, but with a healthy skepticism and awareness of its inherent flaws. We must recognize that those who hold power in the financial world, whether they are bankers or economists, are subject to the same human frailties that govern all of us. The pursuit of wealth and power can blind individuals to the consequences of their actions, leading to decisions that harm the very people they are meant to serve.

Thus, in our own lives, we must cultivate the wisdom to question and challenge the economic systems that affect us. We must not blindly trust those who claim to know the answers to the world’s economic problems, for their visions are often shaped by personal ambition and self-interest. Instead, let us seek to understand the true nature of wealth—not as an end in itself, but as a tool to build a just and equitable society. Let us ensure that, in our pursuit of economic success, we do not sacrifice the well-being of others, and that we remain vigilant against the superstition and mystique that often cloud our judgment when it comes to matters of money. Only then can we begin to build a more honest, sustainable, and equitable world.