Any discussion of science — including the social sciences — must begin with basic premises or principles. Principles consist of assumptions that act as established truths at the beginning of any explanation or argument. A clear understanding of the science of economics requires a few basic principles. I will begin my discussion with the following … Continue reading Principles


People frequently miss use the word “theory.” They often use the word theory when the more precisely mean hypothesis. I will describe these two terms in layman’s words to make a distinction: THEORY A theory explains why specific behavior occurred in the past and provides a basis for explaining expected behavior in the future. Sound … Continue reading Theories


A person’s philosophical values must be congruent with the principles and theories that they advocate. This statement holds particularly true when applied to social sciences like economics. The connection between philosophical values and the economic meaning of the word value plays an essential role in understanding economic principles and theories. What a person subjectively values … Continue reading Values