Economics: From modernism to postmodernism

Abstract

The dominant form of theory in the world of economics today, namely, the Neoclassical economics, claims its theories are universal, scientific and rational. Relying on the positivist methodology, the claim that humanity will be able to dominate the environment through positive analysis, which is one of the tenets of the enlightenment and hence modernism has an important place in the development of this perspective in economics. However, the idea that the social environment of man could easily be manipulated with positive inferences like those in the natural sciences seems problematic. The debate over whether it is possible to mention of single positive facts in economic life started long ago and more pluralistic points of view flourished later. Within this process, diversity and difference replaces the single fact positivism, and methodological individualism is replaced by a more holistic approach. At the same time individuals' thoughts and emotions as well as cultural norms of different societies are subjects of scrutiny again. In this vein, the Original Institutional Economics and the Heuristic approach to economics and mentality came into the fore again. The aim of this study is to present the evolution of economics from modernism to postmodernism as a disciplined thought process.