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The problem is that the system in the case of the economy is composed of billions of humans, not machines. The economy is much more complex, which makes it har
by 1980phipsi 3y ago
The problem is that the system in the case of the economy is composed of billions of humans, not machines. The economy is much more complex, which makes it harder to understand and forecast where it’s going. That doesn’t mean one is right or wrong. It just means there are limits to our knowledge.
- AndrewKemendo 3y agoTrying to align the fickle, changing, unpredictable interests of billions of people is actually impossible
- pif 3y ago> It just means there are limits to our knowledge. Sure there are! But, do economist acknowledge such limits? This is the question!
- bell-cot 3y agoAnd yet the electrical engineers have (considering) very little trouble keeping huge national and international electrical power grids stable. Despite billions of self-interested humans using electrical power with zero-ish regard for that stability. Admittedly, it does help that those with the real power, whom the EE's ultimately serve, want stable electrical power grids. Vs. the folks who the economists serve want wealth, power, legitimacy, status, excuses for blatantly self-serving official behavior, ...and plausible deniability, when things keep miserably going wrong from the PoV of the 99.9%.
- sobellian 3y agoThe federal reserve is actually quite good at preventing panics. Compare the frequency of panics in the 19th century to 21st century.