An economist plays two roles: scientist and policy advisor

Subject:BusinessPrice: Bought3

Share With

An economist plays two roles: scientist and policy advisor. As scientists, economists explain the world, and as policy advisors they help improve the world. Because these two roles have different goals, they require different types of language. Economists as scientists make positive claims, whereas economists as policy advisors make normative claims.

 

In your initial post, begin by briefly introducing yourself, including your program of study and career interests. Then address the following:

 

Explain the difference between positive and normative analysis.

Provide an example of a normative statement or an example of a positive statement from a recent news story.

For your response posts, select two or more initial posts that contain different current news examples (normative versus positive), and contrast your example with those of your peers. What makes the examples different? How do those differences relate to the different roles that an economist plays as a scientist and policy advisor?

Post 1

Renee- My Name is Renee and this is my first semester as SNHU. I am from Connecticut and I currently work at Pratt and Whitney and am in process of obtaining a B.S. in Operations Management with a focus in Project Management.

When economists evaluate positive statements or and normative statements, only positive statements can be ruled on data alone. A normative statement, however, can be evaluated by both data and perspectives of the topic at hand. In order to judge a normative statement, an economist must take into consideration values as well as actual facts while positive statements can be concluded by looking at charts and graphs of the subject matter.

An example of a positive statement from a recent news story would be:

The pace of the economic recovery in 2021 hinges on the pace of vaccination. PWBM projects that doubling the number of vaccine doses administered daily to 3 million per day would boost employment by more than 2 million and real GDP by about 1 percent over the summer, with smaller effects later in the year.” (Paulson, March 1, 2021)

This statement can be justified through research with tables and charts to prove that this is the trend in which employment is improving.

 

Paulson, M. 2021, March 1. Epidemical and Economic Effects of the Covid-19 Vaccine in 2021. Budget Model. https://budgetmodel.wharton.upenn.edu/issues/2021/3/1/epidemiological-and-economic-effects-of-covid-19-vaccine

Response:

Post 2

Shelly - My name is Shelly, I live in a small town outside of Charleston, WV. I have eight children and four and a half grandchildren. I currently work as a virtual trainer but would like to find another Human Resources Specialist position once I graduate, this time in the private sector. I previously worked in retail management and in human resources for state government. I’m pursuing my bachelor’s degree in Business Administration with a concentration in Human Resources Management, which I should obtain at the end of February.

The easiest way to describe the difference between positive statements and normative statements is that positive statements use data and facts, statements that can be tested, while normative statements state how we think things should be, based on our values and beliefs. Our beliefs and opinions contribute to normative statements, while we rely on analyzing unbiased data for positive statements.

According to Patti Domm, a contributor for CNBC, the current economy is experiencing large growth because of people becoming vaccinated and starting to travel, return to school, return to work, going to restaurants and gyms, and staying in hotels, (Domm, 2021). This is an example of a positive statement because the information can be tested against data and statistics. “Excessive stimulus driven by political considerations was a consequential policy error that would be tragically compounded if valid concerns about the economy overheating prevented by Congress from making the types of necessary public investments that are the focus of President Biden’s Jobs and Families Plans”, (Summers, 2021). This is an example of a normative statement because it focuses on opinion and personal belief, not facts or data that can be tested.