White-collar criminology findings falsify several neo-classical economic theories.

Bruce Schneier quotes a paper on ‘control fraud’ theory, discussing how those in position of power (CEOs, heads of state and bosses in general) are the biggest security risk. According to the author this kind of fraud causes greater losses than all property crime put together (no shit?), but what I found especially resonating is the above quote. Even though I know almost nothing about Economics, whenever I watch the pundits on television I get the feeling Economics might be only slightly more of a science than Astrology. Then again, when I read something about the subject by some seemingly uncompromised economist, I find it a little more believeable as a scientific discipline.

So I’m left wondering: is the science of Economics itself a victim of control fraud?