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We won’t fix inflation while economists stay in denial about its causes (www.smh.com.au)
submitted 1 year ago by Zagorath@aussie.zone to c/australia@aussie.zone
34 comments fedilink hide all child comments

Non-paywall link.

TL;DR: economists are still stuck in the idea of the market as a perfect force for reaching optimal outcomes. They're ignoring the simple fact that businesses are putting prices up purely to increase profits. And that they can do this because the economic ideal of perfect competition (where many small firms compete with near-identical products) does not exist. We have a small number of very powerful businesses—oligopolies—in nearly every market for consumer-facing goods.

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[-] Pons_Aelius@kbin.social 21 points 1 year ago

Because it is not a science.

A founding principle of economics is that people make rational economic decisions...

[-] Salvo@aussie.zone 7 points 1 year ago

Pure Economic is a science, but popular implemented Economic is a pseudoscience at best. It has been corrupted by commercial interests.

Different types of science are derivative of other forms of science. Physics is just applied Mathematics, Chemistry is applied Physics, Biology is just just applied Chemistry, Psychology is just applied Biology and Mathematics is applied Psychology.

Pure Economics is an amalgam of Psychology and Mathematics.

Economic Rationalism is a oxymoron because Economic relies on irrational psychology and is subject to change based on observations.

[-] Pons_Aelius@kbin.social 6 points 1 year ago* (last edited 1 year ago)

Pure Economic is a science _

A statement is not a fact. Prove your statement.

Pure Economics is an amalgam of Psychology and Mathematics.

This implies Psychology thinks people are rational, it does no such thing.

Economic Rationalism is a oxymoron because Economic relies on irrational psychology

You are almost there:

Economics is a science is a oxymoron because Economics relies on irrational people being rational.

[-] Mrrt@sh.itjust.works 1 points 1 year ago

Physics will approximate a cow as a sphere, which you can observe it is not.

In science theory you have to make assumptions and approximations to simplify and get at the underlying mehanics. THEN you can complicate everything with the reality of it all.

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this post was submitted on 21 Aug 2023
252 points (96.3% liked)

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