Greebo Posted July 4, 2008 Report Share Posted July 4, 2008 I'm currently reading 'The Origin of Wealth', by Eric B something (sorry, its a long last name) - which is discussing the failings of classical economic theory. It discusses how Traditional Economists have used theories that make assumptions about human behavior that are completely ungrounded in reality (such as, "Humans use perfect rationality, know all the variables, and make perfect decisions every time"). It then goes on to discuss new, evolving theories about economy and how the economy is very possibly a complex, evolutionary system that, like the weather, can't be predicted perfectly because human beings are not "Perfectly rational" - which means they make best guesses based on available information, not perfect guesses with complete and total information about their decision before making it. The early sections of the book are particularly interesting, because they describe meetings between economists and physicists in the 50'. The economists, who had been operating on Ivory Tower theories that had no base in reality, felt the scientists "just didn't get it", while the scientists kept insisting to the economists that it didn't matter of their theories usually worked, because if they weren't grounded in reality, they were wrong. I think this is a book anyone with an interest in economic matters should read - and any objectivist will appreciate for the pure irony. Quote Link to comment Share on other sites More sharing options...
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