> consider how much economic work is still based on the utterly flawed concept that humans are rational in a classical sense
It is not. In its descriptive mode, economics captures animal spirits well. In its prescriptive mode, yes, this is assumed. But rationality is a simplifying assumption, with work then done to explain why the reality observed in the descriptive mode diverges from the predicted behaviour of rational actors. Put another way, the rationality assumption is part spherical cow, part “what would we do were we rational?”
Rejecting modern economics for the rationality assumption is rejecting modern physics for its use of frictionless environments.
It is not. In its descriptive mode, economics captures animal spirits well. In its prescriptive mode, yes, this is assumed. But rationality is a simplifying assumption, with work then done to explain why the reality observed in the descriptive mode diverges from the predicted behaviour of rational actors. Put another way, the rationality assumption is part spherical cow, part “what would we do were we rational?”
Rejecting modern economics for the rationality assumption is rejecting modern physics for its use of frictionless environments.