How well Does Economics reflect the reality of social life?

I know that the main argument economists use today to defend their field from all the accusations of using bluntly falls assumptions and building oversimplified models to describe complex social construction is that:

“A model does not have to be realistic, as long as it can with more or less certainty predict the behavior of the subject in question”

However, the apparent question that consistent individual should derive from this defense are:

“Is the model good enough analytical tool for governments and corporations throughout the world to on in forming their positions? Or does it in fact neglect vital parts of of our social construction and leads people to false conclusions, resulting in suboptimal decisions?”

For Example:
When I ask people of different age and background (from students to retirees): what in their opinion was the best, happiest period in their life, the most common answer I receive is – when they were students! or second answer when they just married.

Although this answer may sound quite apparent to many people, try thinking about it from an economic point of view:
What it implies is that individuals in their thirties/forties/fifties – with good job,high positions, stable incomes, large apartments, cars and other such utility maximizing gadgets, actually have lower levels of total utility to those who live in Common Halls,have lower incomes, and face high levels of uncertainty!

If economics fails to rationally explain such and may more similar questions, I wonder how adequate is it to put so much faith into it?

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