There are different ways in which realism can be understood to operate in economics. Through these paths, we can recognize a series of economists who can be described as realists. There is also a philosophical approach to realism, viz. of a critical or transcendental nature expressing symmetries beyond the events generated by empirical science.
It focuses on fundamental structures as a proper piece of economic study. Transcendental or critical realism offers a view of science (logic), economics, and society that tends to understand the political economy (distribution of political and economic power in a society) of countries. Additionally, he is also able to resist the perception that there is a rationality behind the origin of civilizations and human social history.
We often doubt the diversities of realism most relevant to economics and its various branches, especially microeconomics (economic behavior and aspects at the micro level) and macroeconomics (economic behavior and aspects at the macro or country level) on the grounds that the Economics (social science) does not make imperceptible hypotheses like the natural sciences (physical sciences) do.
We must not forget that there is a very high probability of being realistic about cause and effect relationships or causation, which indicates that we can greatly apply realistic reasoning to causation because these are the best solutions to the economic problems.
Economic problems cannot be separated from the problem of choice, scarcity and sustenance. According to Samuelsson (Economics, 11th ed., 1980), the economic problem is the struggle for subsistence, has always been until now the primary and most demanding problem of the human race – not only of the human race, but of all of biology. kingdom from the beginning of life in its most primitive forms.
Many realist economists, including Jochen Runde, value causal explanations as answers to questions (why particular questions) that give additional information about prospects, capabilities, and propensities. Realistic economic theories are experiencing a mode of revitalization within the subject of economics.
Critical studies of the special nature of the object of economics as well as the type of methodology used that can reasonably be validated for the scientific study of economic objects and economic problems (especially the central problems of an economy: What produce? How to produce? How much to produce? For whom to produce?) are making a comeback. Realist economists again talk about issues such as the relationship between the economy and the rest of society, including the environment.
There is transformation of consciousness and attention in the explanation of elementary groupings such as causality, money, competition, utility, culture, norms, stratification, diversity, need, power, reality, rationality, technology, globalization, time and risk, etc. In contemporary economics, to dream up more realistic economic ideas and theories, it is necessary to understand all the elementary groupings mentioned above. Above all, there is a great need to understand the logic behind every economic reality because logic or science is concerned with recognizing and illuminating economic mechanisms and systems.
COVID-19 is the greatest economic and social reality of the contemporary world. This is not just a global pandemic and public health emergency, but the most contemporary realistic economic problem.
It also had a harsh impact on the global economy. The main realistic economic consequences of this pandemic are substantial drops in income, an increase in unemployment (educated unemployment in particular) and problems in the service of means of transport, etc.
The most unfortunate part of this reality is that most economies around the world have underestimated the risks and dangers of a rapid increase in COVID-19 cases and have generally been volatile or oversensitive in their response to this crisis.
As COVID-19 does not appear to be going away in the near future, we need to understand the realism behind the economics of COVID-19. Besides, there must be positive global actions not only to mitigate the shocks of COVID-19 and save lives, but also to safeguard economic well-being.
Dr. Binish Qadri is Assistant Professor, Department of Economics, University of Kashmir