On Mon, Nov 12, 2012 at 07:11:40AM -0500, Roger Clough wrote: > Hi Russell Standish > > Below you infer that economics is a rational activity. > It isn't. it's close to a branch of psychology.
You misconstrue me if you think this. Firstly, I'm not an economist, so my opinions on the subject don't count, but more importantly my opininion is that neo-classical economics is built as a house of cards on mathematical fallacies. See my friend Steve Keen's book "Debunking Economics" for a much better explanation. He is an economist, and was talking about the GFC several years before before it happened, and as a result is now being listened to! As far as the concept of perfect rational agent is concerned, it is a fiction - but worse than that - it is an inconsistent fiction, as my comments try to draw out. Of course people do not act as rational agents, my point is that they cannot even act approximately like rational agents either. But neo-classical economics is founded on the concept of rational agent as a corner stone, and as Steve points out, this one of many fallacies gracing the theories used by our national treasuries. As far as your last sentence goes (economics is close to a branch of psychology), yes of course. The problem is that psychology is a long way from being a hard, mathematical science. Hari Seldon is a long distant fantasy :). But economists have "physics envy", so they'd like to roll up their psychology problems into neat mathematical boxes like spherical cows, which they label rational. Trouble is, it doesn't work the way they've done it. Cheers -- ---------------------------------------------------------------------------- Prof Russell Standish Phone 0425 253119 (mobile) Principal, High Performance Coders Visiting Professor of Mathematics [email protected] University of New South Wales http://www.hpcoders.com.au ---------------------------------------------------------------------------- -- You received this message because you are subscribed to the Google Groups "Everything List" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/everything-list?hl=en.
