Conclusion: Like Physics or like Literature?

This concluding chapter explains that the influence of economics is at odds with its shortcomings as a philosophy, as a scientific doctrine, and as a set of policy norms. The invisible hand is magical thinking, and its repeated disconfirmation has had little effect. On the other hand, economics has a set of empirical disciplines and achievements, with enclaves of technical and even scientific credibility. This suggests some downgrading of authority, but not all the way. Economics is not superior to other sources of authority, but is not necessarily inferior to them either; it should be taken as one voice among many. In that respect, it is rather like Social Democracy. The Nobel Prize committee has been able to maintain the credibility of the prize only by acknowledging that economics does not hang together as a single all-encompassing system of thought. Social Democracy provides an alternative that is pragmatically successful, analytically coherent, economically efficient, ethically attractive, and theoretically modest.