Economics is great at coming up with plausible sounding stories about why things happened, but that doesn’t mean those explanations are correct. The fact that the same theories lead to incorrect predictions is a strong indicator that the explanations are wrong, too.
Or to put it more bluntly, most of the field of economics looks a lot like a pseudoscience.
Economics is great at coming up with plausible sounding stories about why things happened, but that doesn’t mean those explanations are correct. The fact that the same theories lead to incorrect predictions is a strong indicator that the explanations are wrong, too.
Or to put it more bluntly, most of the field of economics looks a lot like a pseudoscience.
Well, when one of the founding assumptions is that humans make rational economic decisions, you are in for a bad time.
What if you assume they have infinite time horizons or instantaneous and free transaction costs over infinite distances?
Assume that this cow is a sphere
I called this out when I was 19 and first took econ 101.
I was like, the foundational premise of this entire field is demonstrably wrong, wtf
Yep. It is like starting geometry by saying. “Lets assume π = 3.”
Shhh. Picketty might hear you.