See Hudson's January 2004 paper, "The Mathematical Economics of
Compound Rates of Interest: A Four-Thousand Year Overview, Part I"
Four-fifths of the way through the paper is a section titled
"Economics vs. the Natural Sciences: The airy methodology of 'as if'
" which begins:
> What is even more remarkable is the idea that economic assumptions
> need not have any relationship to reality at all. This attitude is
> largely responsible for having turned economics into a mock-
> science, and explains its rather odd use of mathematics.
>
In it, Hudson writes, quoting Mill:
> The sophistical tendency can be traced back to John Stuart Mill?s
> 1844 essay ?On the Definition of Political Economy; and on the
> Method of Investigation Proper to it?:
>
> In the definition which we have attempted to frame of
> the science of Political Economy, we have characterized it as
> essentially an abstract science, and its method as the method a
> priori. . . . Political Economy, therefore, reasons from assumed
> premises ? from premises which might be totally without foundation
> in fact, and which are not pretended to be universally in
> accordance with it. The conclusions of Political Economy,
> consequently, like those of geometry, are only true, as the common
> phrase is, in the abstract; that is, they are only true under
> certain suppositions, in which none but general causes ? causes
> common to the whole class of cases under consideration ? are taken
> into account.
>
Hudson's paper was the fifth hit on a google search for "Michael
Hudson John Stuart Mill". It is online at http://www.michael-
hudson.com/articles/debt/CompoundInterest1.html .
Pat Inman
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