Fundamental Methodological Errors arise from the misguided attempt to apply scientific methods to the study of human beings. Some of these are listed and explained below. An alternative, radically different methodology, utilized by Karl Polanyi in his classic, The Great Transformation, is also discussed below
Brief summary of basic thesis
Science was imported into Europe from Islamic Spain. While experience with scientific and empirical methods led to tremendous advances in science, articulating the philosophy of science was never done correctly -- just like a person can speak a language perfectly well, without being able to articulate the rules of Grammar. Bacon understood scientific methodology to be inductive, but this was wrong. Later, the logical positivists understood scientific methodology to be axiomatic-deductive, but this was also seriously wrong. Currently, massive confusion exists in the philosophy of science, as well described by Hacking, Representing and Intervening. This confusion has not caused much damage to physical sciences because they learn methodology hands-on, apprentice fashion, from practicing scientists. However, mistaken understanding of methodology has seriously damaged the development of social sciences, which have consciously tried to implement mis-understandings of scientific method as a basis for creating a new social science. In many articles, I have explained how current methodology in Economics and Econometrics is based on positivist ideas. Even though these ideas have been disproven and rejected, no one has bothered to re-think the foundations Economics and Econometrics. As a result, these disciplines continue to utilize a wrong methodology which is not suited to the acquisition of knowledge about the real world.

Critiques are not effective unless an alternative is offered. Karl Polanyi offered the deepest and most trenchant critique of capitalism in his book entitled the Great Transformation. There is no methodology explicit in the book, but studying how he argues, I was able to derive several methodological principles which are radically in conflict with underlying assumptions of modern conventional economic thoeries. In fact, many of these assumptions are shared with heterodox economists, which may be one reason why they have not been able to mount an effective critique. They are trapped in the same methodological confusions which gave rise to neoclassical economics. Some of the items listed below discuss this alternative methodology, as a way to move forward from the current impassed being faced by economics. 

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Islamic Economics: A New Methodology Part I 40 Minutes -- rejecting positivist methodology, and developing alternative based directly on Islamic concepts 
The Methodology of Polanyi's Great Transformation 45 minute Video Lecture 
Unregulated Markets and the Transformation of Society 50 minute Video Lecture on the Great Transformation and its harmful effects on society 
Islamic Economics: A New Methodology Part II 52m Video lecture on new methodology based on Islamic principles 
Methodological Mistakes and Econometric Consequences 62m Video Lecture on how logical postivism has led to a seriously defective methodology for econometrics 
Main Page on Polanyi Links to all related materials 
Logical Positivism Links to many articles on LP 
Methodology, as it relates to Islamic Economics Methodological Issues in context of Islamic Economics. 
URDU: Models, Scientific Methodology & ABM Urdu: Major mistakes in understanding models and scientific methodology -- and how these can be corrected. [first part of lecture] 
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