Is debased language an economic problem?

Neo‐classical theory is often attacked because of its alleged lack of realism and nowhere is this said to be more conspicuous than in the Held of development economics. However, when one examines the terminology used in support of such criticism, it tends to lose much of its apparent force. The present article sets out the meaning of positive and normative economics in a neo‐classical setting, and briefly considers the implications of the market system and the unequal pattern of income distribution with which it is associated. Our general conclusion is that debased language serves to sustain obsolete ideas.

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Professor of Economics, University of Pretoria