Positive Economics
Definition
1) "A body of systematized knowledge discussing what is." [1]
Positive statements are objective, and concern themselves with matters of fact rather than matters of opinion. They can also question how things actually are. Doing so, they do not use value judements or emotion, but rather concentrate on empirical data to back claims.
Examples
-- A decrease in interest rates will cause a decrease in the exchange rate and an decrease in the demand for imported products -- The creation of a national minimum wage would likely cause a decrease in the demand for low-skilled labour -- Employment is higher in the United Kingdom than it is in Germany -- After 9/11, the American stock market had a recession -- Lower taxes may stimulate an increase in the active labour supply
History
Vienna Circle
The Vienna Circle was a group of philosophical mathematicians and physicists who met to discuss the philosophy of science. Established in 1925, the group had a variety of members who formed the idea of logical positivism. They believed that their group had reached a "decisive turning point in philosophy"[4], but made sure to reference similarly-minded predecessors. Their influences basically consisted of all philosophers who disagreed with metaphysics or speculation, notably Ernst Mach, Bertrand Russell, and Ludwig Wittgenstein. By the 1930s, the movement expanded out of such a small circle. As more economists entered into the discourse, disagreement grew and the Circle eventually disintegrated.
The goal of the Vienna Circle
