The quote “Before economics can progress, it must abandon its suicidal formalism” critiques the tendency within economic theory to rely heavily on abstract models and rigid mathematical frameworks at the expense of real-world applicability and human experience. The term “suicidal formalism” suggests that this overemphasis on formality—often prioritizing precision and technicality—can lead to a disconnect from practical realities, ultimately hindering meaningful progress in understanding economic systems.
To unpack this idea, consider how traditional economic models often simplify complex human behavior into equations that may overlook vital factors such as emotions, social dynamics, cultural influences, or ethical considerations. While formalism aims for clarity and predictability, it can sometimes result in analyses that are detached from the messy nuances of everyday life. For instance, during financial crises or recessions, reliance on theoretical models might fail to account for the emotional distress of individuals or communities affected by unemployment or loss.
In today’s world, especially with ongoing global challenges like climate change and inequality, there’s a pressing need for economics that considers broader societal impacts rather than focusing solely on numerical growth metrics. This approach could encourage more holistic policies that address not just GDP growth but also sustainability and well-being.
When applying this idea to personal development or individual decision-making, abandoning strict formalism means being open to flexibility in our goals and methods. Instead of adhering strictly to quantifiable measures of success—like salary increases or promotions—we might focus more on qualitative outcomes such as job satisfaction or work-life balance. In practice, this could involve adopting a mindset that values experiential learning over rigid adherence to plans: being willing to adapt based on feedback from real-life experiences instead of solely following pre-established rules.
Ultimately, embracing a less formalistic approach encourages creativity and responsiveness both in economics as a discipline and in our personal lives. It advocates for an understanding rooted in reality rather than abstract principles alone—a shift toward seeing the human aspect behind numbers which is essential for genuine progress.
