December 8, 2016

Equilibrium is a nonentity like dancing angels on a pinpoint

Comment on David Glasner on ‘A Primer on Equilibrium’

Blog-Reference and Blog-Reference and Blog-Reference

Economics is a failed science and this is the current state in Hume’s apt metaphor: “... when the road ends at a coal-pit, he [the traveler] doesn’t need much judgment to know that he has gone wrong, and perhaps to find out what has led him astray.”

What has led economists astray is the concept of equilibrium. Methodology 101 tells us: every economist who accepts supply-demand-equilibrium as an explanation of how markets work disqualifies himself as a scientist.

The state of imbecility is documented by the acceptance of TWO nonentities, viz. equilibrium, and rational expectations.

Egmont Kakarot-Handtke

Related ‘Methodology 101, economic filibuster, and the mother of all excuses’ and ‘The road that turned out to be a blind alley’ and 'Forget equilibrium' and 'Equilibrium is stone dead — and now?' and 'The market economy is inherently unstable and economists never grasped it' and 'Axiomatized nonentities and the failure of methodologists' and 'Economics between Angelology and Nonentitylogy' and 'Could we, please, all focus on the key question of economics?'

Immediately following The prime primer on equilibrium