ABSTRACT
This chapter suggests that the case of economics, schizophrenia always has been latent in the discipline and has been kept that way only by sweeping under the rug important problems which increasingly have crept out to disturb the neat world of economist and econometrician alike. The central core of economic theory— at least microeconomic theory— was spelled out by Adam Smith and elaborated upon by the well-known nineteenth-century mainstream economists. The simple world of the classical economist, familiar to all economists, was orderly and attractive, but unrelated too much of the economic reality even of its own time. Economics is and always has been primarily a science of valuation rather than merely allocation, it follows that price is not the only relevant measure of value, even in the areas where the price system still serves as the sole or primary allocative mechanism.
