February 11, 2016

Economists cannot think as well as we thought

Comment on ‘Markets Don't Work as Well as We Thought’

Blog-Reference

The problem is not so much that economists do not understand how financial markets work, the problem is that economists do not understand how the market economy works.

Walrasianism, Keynesianism, Marxianism, and Austrianism are provable false. The fundamental flaw is that economists cannot tell the difference between the elementary concepts income and profit. This is like medieval physics before the difference between kinetic and potential energy was clearly understood.

One of the big unanswered questions of the history of human thought is how economists ever came to hallucinate that the proto-scientific stuff they produce since more than 200 years is something other than what the genuine scientist Feynman called cargo cult science.*

Egmont Kakarot-Handtke


* See posts ‘Economists’ three-layered scientific incompetence’ and ‘Economists are a menace to their fellow citizens’ and ‘Economists cannot do the simple math of profit — better keep them out of politics’.


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CHALLENGE  economistsview links-for-02-11-16

Funny, how you are politically groping in the dark. Did it ever occur to you that none of your arguments has a sound theoretical foundation?

Right policy depends on true theory.

“In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum, 1991, p. 30)

Lacking the true theory, economists market since more than 200 years opinion instead of knowledge.*

Before blogging, do your scientific homework first (e.g. 2015)


References
Kakarot-Handtke, E. (2015). Major Defects of the Market Economy. SSRN Working Paper Series, 2624350: 1–40. URL
Stigum, B. P. (1991). Toward a Formal Science of Economics: The Axiomatic Method in Economics and Econometrics. Cambridge, MA: MIT Press.

* See post ‘Economists’ three-layered scientific incompetence