Showing posts with label economic theory. Show all posts
Showing posts with label economic theory. Show all posts

Wednesday, August 24, 2011

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.