Machine learning displaces economic theory

Economics practice — especially in finance and top empirical macro — is shifting from theory‑driven, marginalist reasoning toward model‑free machine‑learning approaches that prioritize heavy quantitative skillsets over formal economic training. That transition changes who gets hired, what counts as valuable knowledge in departments and firms, and how policy or investment decisions are justified. — If true, the shift alters academic incentives, labor demand for economists, and the role of economic theory in public policy and markets.