Is economics considered a science? If so why? Isn’t money and value merely an agreed upon idea? A paper dollar has value because we all believe it does. Even gold’s value is based on belief. How is this a science?
Question asked on Quora: https://www.quora.com/Is-economics-considered-a-science-If-so-why-Isnt-money-and-value-merely-an-agreed-upon-idea-A-paper-dollar-has-value-because-we-all-believe-it-does-Even-golds-value-is-based-on-belief-How-is-this-a-science/answer/Jack-Beacham
Yes, economics is considered a science. As Ludwig von Mises describes in his great treatise on Economics, Human Action, economics is the science of human action. Why You Should Read Human Action in 2020 | Jeff Deist, Shawn Ritenour.
Like logic and mathematics, the science of economics is a priori.; that is, it is based upon axiomatic, irrefutable principles. Just as the rules and implications of geometry are based on a set of five axioms, economics is built upon a few universal truths.
Yes, money and value are agreed upon ideas—no merely about it. Economics describes how money, as a medium of exchange, facilitates, indirect exchange—bypassing the innate limitations of direct exchange, i.e., barter.
As modern, subjective (Austrian) economics has demonstrated, value is in the eye of the beholder; that is, subjective.