Positive Economics
Categories: Econ
Sometimes you just have to tell yourself to stay positive on rough days. See the glass as half full.
Positive economists may be happy or they may be cranky, but they’ll tell you: that glass is half empty. Yep, it’s half full too. Both of those are objective statements, so they’re both “positive” in the positive economic sense.
Positive economics is all about what’s objective. Taxes rose by 2%. Nation Flaggyflag declared war on nation Nail and Gear. The facts of our political economic life.
To contrast, there’s normative economics, which is opinion based. Taxes are too high. Nation Flaggyflag is rebel scum. Opinions, opinions, opinions.
Positive economics is data-based, while normative economics is based on value statements. Some people think no taxes would be more “fair.” Some people think a lot of taxation would be more “fair.” Wherever there is judgment, you will find normative (subjective) economics.
