I'm thrilled to be, for once, quotable!
However ... Lubos is right in the restricted sense that at some
point, maybe several decades after the original thought, it
should be possible to evaluate work in theoretical physics
objectively. We do know, have done for decades, who wins in
Einstein-versus-Lenard.
But this is much too slow to base funding decisions on!
Just how slow is shown by the case of the cosmological constant
- after 80 or 90 years we still don't know whether it was
Einstein's greatest mistake or not.
In the narrow sense of whether it was theoretically a correct
and well-motivated thing to add to the equations, it was not a
mistake - but whether Nature bothers to take notice of
everything that we believe is theoretically correct and
well-motivated is still another question.
Whether a subject is of interest can often not be evaluated in
any way that stands the test of time. In say 1985 you might
have found a consensus that the cosmological constant was not
an interesting thing to be working on. Today it seems that
almost everyone is working on it. (I exaggerate a little.)
I think the most important thing for
not-catastrophically-misguided use of science money is not any
kind of 'free market' (...I'm still unclear how such a thing
might possibly work for government-funded operations - free
markets require many buyers) nor peer review (though that is
needed) - but rather honesty about what has or has not been
achieved, and what may or may not be done in the future.
The worst scandal I can think for science would be not how much
or little money is paid to string theorists or the LHC, even if
both turn out to be useless, but rather if it turned out that
some apparently important results either theoretical or
experimental were simply fabrications and hoaxes. That has
happened in solid state physics (J-H Schoen) and biology
(cloning) but not in fundamental physics.
Smaller versions of such a scandal are provided by exaggerated
statements which often appear in the media (sometimes the
exaggeration is the fault of the media themselves) ... everyone
can think of examples - now science should be precisely about
avoiding exaggeration, shouldn't it?
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