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Reconsideration of What is Economics? Takamitsu Sawa This paper aims just at providing students the idea about what is economics. The first question that must be answered is whether or not economics is a science. In order to consider this difficult problem the following two points really play an essential role. First, logical structure of economics is perfect enough to satisfy qualification of a science, i.e., possess refutability. Second, economics has been institutionalized at least in the USA, but in Japan institutionalization of economics is still imperfect. This implies that economics is permitted to acknowledge itself a science in the USA, but it lacks some of necessary conditions of institutionalization here in Japan. More fundamental question is, however, concerned with whether or not economics should be a science. Carl Popper, a scientific philosopher, pointed out in his book entitled Poverty of Historicism that modern economics including both neo-classical and Keynesian economics is well-qualified to acknowledge themselves to be a science, while Marxian economics lacks a necessary condition of a science. The reason why is that Marxian economics sticks to historicism, i.e., finding out the law of history. My opinion is that economics should not only confine itself to what is called a science by Popper but also be prepared to analyze economic phenomena in various ways including historicism, political economy, and so on so forth. Another important role of economics is to design the most desirable society in the following senses: everybody feels not only affluent but also happy; efficiency and fairness are equally paid high regards; maxi-min principle should be fully appreciated. Reconsideration of What is Economics? Takamitsu Sawa 019