Re:Economics education can shift people in a selfish direction?
by QuantumChaos on Sunday August 31, 2014 @07:16PM
(#8250782)
You cannot criticize economics without at least some understanding of it. The only point that was coherent enough for me to reply to was:
>What exactly is rational about a system which centuries of history have proven is unable to function without a predictable cycle of manic-depressive booms, recessions/depressions, and anti-democratic bailouts?
Economists claim individuals are rational, not that the whole system is "rational". Rational individuals interacting could result in a really shitty result, which is bascically what macroeconomics is about.
Depressions suck, that is why macro-economists try to smooth out the business cycle. The fact the we needed the latest bailout is a sign they haven't solved this problem yet. But I don't have a better solution.
Likewise with 'efficient'.
As for selfishness vs altruism - short term gain can lead to long term loss, which is why 'rational' economic theories have such poor long-term predictive power. (In fact, they have negative predictive ability. You can be sure that if someone billed as important makes a prediction about macro conditions, something else is going to happen.)
What exactly is rational about a system which centuries of history have proven is unable to function without a predictable cycle of manic-depressive booms, recessions/depressions, and anti-democratic bailouts?