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Economics is a science where the researchers often assume how the world works as opposed to measure how things works in reality. Economics is sometimes dressed
by acd 9y ago
Economics is a science where the researchers often assume how the world works as opposed to measure how things works in reality. Economics is sometimes dressed up with mathematics but it is still a soft science.
In other sciences such as mathematics and physics you have to prove how things works. You cannot just make up an arbitrary model and say this is how we think it works.
Consumer credit is created by keynesian now abundant that is owned by richest percent. Thus many the middle class are now debt slaves to the rich percent. This also goes for house pricing which is what caused the last economic crisis.
Keysnian economics does not take into account that printing new money, the new money does not directly go into salary inflation, it goes to factory automation. Factory automation decreases the price of goods and are thus deflationary. Software is also automation which again will have a deflationary force. One robot replaces on average 5.7 humans.
To sum it up Keysanism make the richest one percent richer and most everyone else poorer. The way Keysnaism does this is by central banks printing new debt out of nothing that the richest percentage then owns. Whats the next bubble Keynesian economics is going to create trillions of Hedge funds that may burst or subprime auto loans?
- forapurpose 9y ago> You cannot just make up an arbitrary model and say this is how we think it works. Perhaps it's meant as hyperbole, but that doesn't happen in economics. Models are not arbitrary, but the result of years of hard work based on generations of research. And then the models are tested and retested against reality. Some problems, such as economics, are important to solve even though the universe does not make it easy for us with an abundance of objective data. 'Why are food prices rising worldwide' is a bit more complicated than 'why does one body fall toward another body of greater mass', but it's just as important.
- qubex 9y agoI’m an applied mathematician turned macroeconomist: what you accuse in your first two paragraphs is true, but it is not for want of trying. We just lack the invariants and symmetries that physicists luxuriate in. We literally have nothing more to work with than what statistics can measure, typically as ambiguous time-series with dozens of aggregate variables subject to wide observation errors and biases. It’s pretty awkward, and we’re very much aware of it.
- Nokinside 9y agoIt's still better to think and formulate hypothesis in math. It's easier to criticize and falsify. Even if the math is there to express an idea formally, it's time well spent.