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Or perhaps we have less understanding of what makes the economy buzz than we think?
by AuthorizedCust 3y ago
Or perhaps we have less understanding of what makes the economy buzz than we think?
- NickC25 3y agoThis ^^ Economics is a pseudoscience, after all. In fact, it's probably just an extension of psychology. Nobody really knows what makes the economy tick, but one thing that can somewhat measure the economy's general strength is the M2 Velocity chart. If the velocity of money is high, it means lots of different people are out spending money and keeping money in quick circulation as opposed to hoarding it.
- dragonwriter 3y ago> In fact, it's probably just an extension of psychology. This is true to the extent (and only to the extent) that behaviorism eventually managed to poke a little bit into economics, which had been dominated by the ivory tower rational actor model detached from empiricism before and longer than any of the other social sciences.
- ajross 3y agoOr we have more? I hate to be That Guy, but all the apocalyptic nonsense about inflation and debt and crypto and spending and fiat currency and pestilence and whatever has been almost exclusively propagated via too-online echo chambers like the one right here on HN. There are Serious People out there too, real economists who have been studying this stuff for whole careers. And quite frankly they haven't been saying any of this stuff. I think it's great that people (especially the GP) seem willing to reevaluate their priors. But maybe while you do that you could nod to the expertise of those "elites" you've been trying to ignore?