3 ms·
On Misunderstanding Economics
- nabla9 11y agoA Country is a company metaphor is probably the most common source of misunderstandings. It's everywhere in political discussion. A company or a household is open system. A country is best modeled as a closed system with feedback loops. Classic: https://hbr.org/1996/01/a-country-is-not-a-company https://hbr.org/1996/01/a-country-is-not-a-company
- sharemywin 11y agoI have a couple problem with economics evangelism. You never hear them talk about conditions for market failure. https://en.wikipedia.org/wiki/Market_failure https://en.wikipedia.org/wiki/Market_failure To the concept of Pareto optimal assumes resources are allocated reasonably in the first place.