Showing posts with the label economic theory

Economics as science: what went wrong

Unfortunately, economics as a "science" has no answer for the questions we face now. As one person noted, "The power of a..theory may be measured as a ratio: the number of facts that it explains divided by the number and type of assumptions it needs to postulate in order to do the explaining. A theory that assumes most of what it is trying to explain is a bad theory." That is why most economic theory is bad theory.