3 ms·

I've never heard that term before, so it's hard to answer :) After learning how microeconomics/"price theory" explains how prices emerge in markets, it can be

I've never heard that term before, so it's hard to answer :) After learning how microeconomics/"price theory" explains how prices emerge in markets, it can be hard to discuss with people who don't understand the mechanisms.

kelseyfrog 2y ago
There's not exactly a good descriptive term, but the vibe I got was beyond, "Markets are the best tool to solve exchange problems," and ventured more into "Markets are an inevitable fact of nature, provide the most utility, and efforts to intervene produce worse outcomes." Let me know if I got that wrong.
ceejayoz 2y ago
> After learning how microeconomics/"price theory" explains how prices emerge in markets, it can be hard to discuss with people who don't understand the mechanisms. AP Physics is learning that a perfectly spherical cow does X. Common sense is realizing perfectly spherical cows don't exist, and that certain things are overly simplified or more chaotic than theorists would sometimes like to admit. See also: https://en.wikipedia.org/wiki/Homo_economicus https://en.wikipedia.org/wiki/Homo_economicus
- TeMPOraL 2y ago
  But then wisdom is recognizing it's AP Physics, not common sense, that put a cow on the Moon. There may not be perfectly spherical cows in the real world, but then real cows will also do X, to the extent their non-perfect-spheriness doesn't interfere with it. Theorists don't simplify for the sake of simplifying, they're trying to study specific components of the whole in isolation. Yes, it's important to not confuse a component for the whole thing, but then it's also important to know the most impactful components and how they behave.
  - ceejayoz 2y ago
    True wisdom is recognizing the folks that put stuff on the Moon had more than just AP Physics under their belt.
Hizonner 2y ago
After learning how bad people who know a little microeconomics are at noticing or accepting it when their "explanations" diverge grossly and repeatedly from what happens in reality, it can be hard to take them seriously.
freen 2y ago
“In theory, there’s no difference between theory and practice. In practice there is.” - Yogi Berra
roughly 2y ago
Understand that the people arguing with you aren't doing so because they don't know or understand the theory, they're arguing with you because the theory is a toy that only works under very specific conditions which are almost never met in the real world.
- BurningFrog 2y ago
  Economists have studied that question a lot, and the general result is that the theoretical models work quite well, even on substantially imperfect markets. I think these concerns are pretty similar to the religious idea that "evolution is just a theory". Our human minds really don't want to admit any facts that would force us to change our world view.

kelseyfrog 2y ago

There's not exactly a good descriptive term, but the vibe I got was beyond, "Markets are the best tool to solve exchange problems," and ventured more into "Markets are an inevitable fact of nature, provide the most utility, and efforts to intervene produce worse outcomes." Let me know if I got that wrong.

ceejayoz 2y ago

> After learning how microeconomics/"price theory" explains how prices emerge in markets, it can be hard to discuss with people who don't understand the mechanisms. AP Physics is learning that a perfectly spherical cow does X. Common sense is realizing perfectly spherical cows don't exist, and that certain things are overly simplified or more chaotic than theorists would sometimes like to admit. See also: https://en.wikipedia.org/wiki/Homo_economicus https://en.wikipedia.org/wiki/Homo_economicus

TeMPOraL 2y ago
But then wisdom is recognizing it's AP Physics, not common sense, that put a cow on the Moon. There may not be perfectly spherical cows in the real world, but then real cows will also do X, to the extent their non-perfect-spheriness doesn't interfere with it. Theorists don't simplify for the sake of simplifying, they're trying to study specific components of the whole in isolation. Yes, it's important to not confuse a component for the whole thing, but then it's also important to know the most impactful components and how they behave.
- ceejayoz 2y ago
  True wisdom is recognizing the folks that put stuff on the Moon had more than just AP Physics under their belt.

Hizonner 2y ago

After learning how bad people who know a little microeconomics are at noticing or accepting it when their "explanations" diverge grossly and repeatedly from what happens in reality, it can be hard to take them seriously.

freen 2y ago

“In theory, there’s no difference between theory and practice. In practice there is.” - Yogi Berra

roughly 2y ago

Understand that the people arguing with you aren't doing so because they don't know or understand the theory, they're arguing with you because the theory is a toy that only works under very specific conditions which are almost never met in the real world.

BurningFrog 2y ago
Economists have studied that question a lot, and the general result is that the theoretical models work quite well, even on substantially imperfect markets. I think these concerns are pretty similar to the religious idea that "evolution is just a theory". Our human minds really don't want to admit any facts that would force us to change our world view.