Dunamis,
In the case of science, it’s a matter of predictive value; in the case of pure logic, it’s a matter of logical consistency. The Razor can only rightly be applied when you are confronted with two explanatory models of nature, or two sets of axioms from which true statements are to be derived.
In science: if each model makes the same predictions, but one model postulates extraneous entities, then the correct model is the one without the extraneous entities.
In the case of pure logic: if two sets of axioms allow for the derivation of the same set of true propositions, then you should work with the set that has the least number of elements. (In other words, if one of your axioms can be derived from some of your other axioms, then it should not be considered an axiom; and, if one of your axioms cannot lead to any logical derivations, then it should not be considered an axiom).
The theory that we are all figments in the mind of God has no predictive value.
I would slightly adjust your comment by saying that philosophy is not limited to scientific hypothesizing. .
If the predictive value of the model cannot be ascertained, then you cannot rightly apply the Razor.
It follows from an evolutionary perspective on what makes rationality possible.
As I noted, “if we didn’t have some way of limiting the number of entities we postulated, our minds would be overrun with extraneous ideas.” It seems reasonable to suppose that our rational faculties have a built-in mechanism for limiting our tendency to postulate entities. I wouldn’t say there is one specific device, or one part of the brain, that is responsible for this. Rather, I would say that this mechanism is one aspect of what makes rational thought possible in the first place.
Rational thought is born from needs. It is directed and limited by these needs. Indeed, if this wasn’t the case, then rationality would never have evolved to the level at which it is employed today. The postulation of entities is thus limited by the needs, or employers, of rational thought. The necessity of our genes, as well as the necessities of our physiological and cultural circumstances, impose limits on how our rational minds function. The Razor is just a formal way of incorporating this fact into our deliberately rational processes. In other words, we all use the Razor, though most of the time we do it without noticing.