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What is the opportunity cost of me writing this blog post? ... I could also be sleeping, cooking, at the pub, or any number of things, but weighing up the vari
by tgflynn 14y ago
What is the opportunity cost of me writing this blog post? ...
I could also be sleeping, cooking, at the pub, or any number of things, but weighing up the various trade offs and benefits of these actions ‘like an economist’ is simply not possible.
And yet somehow the author's brain does make these decisions, mostly subconsciously.
It seems like a big part of the author's criticism of "economic thinking" is that it oversimplifies reality. The conscious human brain simply does not have the capacity to consider all of the possible inputs and outcomes of problems in a system as complex as the world economy.
Human consciousness seems to be a very low-bandwidth single-threaded process while the amount of information processing occurring in the brain which we are not consciously aware of is immense. This may explain why when it comes to complex systems naive common sense often seems to work better than the careful analytic thinking that has been so successful in simpler fields such as physics and engineering.