1974: When Both Nobel Economists Proposed Abolishing the Prize

In 1974, the Nobel Prize in Economics was awarded to Gunnar Myrdal and Friedrich von Hayek for their work on the theory of money and economic fluctuations, as well as their analysis of the interdependence of economic, social, and institutional phenomena. Both Nobel laureates, however, expressed their dissatisfaction with the prize and argued that it should be abolished.

Hayek made his case against the prize in his speech at the Nobel banquet in 1974, expressing his fear that such a prize would accentuate the swings of scientific fashion. He was particularly concerned about the influence the Nobel Prize would grant to individual economists, who might then be considered experts on all societal issues, despite lacking specialized knowledge in those areas. Hayek even suggested that economists should take a Hippocratic oath, promising not to exceed their competence in public pronouncements.

Myrdal, on the other hand, expressed his concerns in a letter published in 1976 and later as "The Nobel Prize in Economic Science" in Challenge. He argued that the selection of the winner was often a political act, as the Royal Swedish Academy of Science presented the laureate as a fait accompli without any meaningful feedback from the Academy.

Myrdal also stated that the awarding of a Nobel Prize in economic science would commonly be seen as a political act and often resulted in the laureate being labeled as either "liberal" or "conservative" by the press, regardless of their actual views. Myrdal believed that the Nobel Prize in Economic Science should be abandoned because economics was not a pure science like physics, chemistry, or medicine.

He emphasized that the Academy should instead retain its academic freedom and not be involved in the decision-making process of awarding the prize.