Western Economics And Regression

The subject of Synthesis and Return of Modern Economics was selected upon re-thought on current economics research and application. Economics has witnessed significant development since the 20th Century and is playing an increasingly important role in public policy decision. However, two problems also have risen, and the one is pan-economics and formalization of economics. In pan-economics, economics is regarded as solutions for specific problems in designated periods rather than a mindset - something like regarding the answer of a math question as the math itself. Formalization of economics means economics research has largely become calculation and design of different mathematics models, and has betrayed real life as well as killed innovative thinking. The second problem is the vulgarization of theory application. Many schools are in place in the economics thanks to numerous researches in last centuries, which makes it easy for some economists to select some of the ideas and apply into the real world. It is now a fashion for Chinese economists to pick up some "theories" to point at or back up public economic policies. In my view, the fundamental problem under the pan-economics, formalization and vulgarization is that today's economics has moved too far from its original starting point. John Maynard Keynes says that people without knowing the preconditions of a problem can often doubtlessly accepted the conclusion! In order to change the situation, a thorough analysis and synthesis is needed for the modern economics in last two hundred years in a move to find the fundamental hypothesis, principals and methodologies for future economics research and application.In 1890, Alfred Marshall has integrated fruits of economics research ever since Adam Smith into a masterpiece book Principles of Economics. His idea of value equilibrium based upon costs of production and marginal utility theories is still the central guiding principal in market resources allocation research. The margin-substitution concept, another analytical instrument developed by Marshall, also proved widely applicable, especially in non-market areas. After Marshall, Keynes established the macroeconomics, and Paul Anthony Samuelson has colligated the microeconomics of Marshall and the macroeconomics of Keynes to form the New Classical School. However, Samuelson has colligated rather than integrated the two theories and has failed to build up a bridge between micro and macroeconomics. The two theories are still separated with different logic preconditions and research methodologies. As many schools of macroeconomics cropped up in lastdecades, the Economics by Samuelson was forced to add new ideas in, and the colligation has become a gathering of economics jargons and covered the real wisdom.This paper will try to seek a new way of integration to analyze and classify economics theories in perspective of analytical methods. If Samuelson has made the economics a complicated topic from a simple one, and I am trying to make the economics as simple as it used to and should be. My synthesis adopts the new classical system of Marshall as the comparative benchmark and trailed along the century-long economics thought history to seek the most fundamental ideas of economics. Based upon which, a thorough review on modern economics research fruits will be conducted to find the development and latest trends against the selected benchmark. Centered at this objective, this paper can be divided into two parts:In the first part, a logical analysis and synthesis will be conducted upon the economics ideas in last two hundred years to conclude three hypothesis (Hypothesis of Economic Man, Hypothesis of Resources Scarcity, Hypothesis of Private Property Ownership), three principals (Maximization Principal, Fair Trade Principal, Supply and Demand Principal) and three methodologies (Individual Analysis Methodology, Equilibrium Methodology, Cost-Earning Methodology), and the conclusions are the detailed comparative benchmarks in reviewing the economics theories.