The old positive fact of reality that the first statement asserted has not changed. By changing definitions, we have merely created a new positive statement. A statement is a true positive fact, according to Weston, when it “is consistent with definitions and axioms that define the system. We are not necessarily saying anything about what is true outside of that system.” (Weston, 4) The values we have based each statement on does not induce them into the sphere of normative science. Neither makes any statement concerning the values of inflation or costs, nor that one statement is preferable over the other.Here lies the duty of the economist: to make a normative decision on which positive statements are most applicable to the needs of society. Do we want to evaluate policy based on inflation definition number one or two? Do we care about social cost one more than social cost two? These are in the scope of normative science. Effectual positive facts are the means in reality to achieve ends. In this manner, economics is not value-free, and for good reason. There must be some utility gained from knowledge for research to be beneficial to mankind. Positive facts are not study for the sake of learning positive facts, but as a possible means to an end.Normative economics are those value statements which guide our use and development of positive science. Positive facts are not limited by our values, but we can use our values to determine which positive statements are of most interest to society. Positive statements are the basis for any science, but do little good for mankind if we do not evaluate and distinguish some statements as more useful than others. Thus positive science is made fruitful through normative values, and reciprocally, normative judgments are based on objective positive science.It is best to demonstrate this with an example from a less controversial science, physics. If a physicist decides that we...
