How Modern Economics Has Lost Its Way: It’s All About the “Unseen”
Economics has lost its way and the study has become both impotent and lacking in relevance.
It’s easy to see how and why once we recognize that proper economic thinking takes place two steps beyond the apparent. Noneconomists typically take none of these steps, while modern economics has lost the ability to go beyond the first.
This can, I think, be explained by economics’s increasing adoption of and reliance on mathematical and equilibrium models, which typically disallow the second step.
What are the steps?
They involve going beyond what is directly observed to uncover first the immediate or atemporal tradeoff and then the