There are no "laws of economics". The economy is a social construct that we can choose to reconstruct. The current "laws of economics", left intact long enough, will slowly reduce home ownership rates until 1% of people own all of the houses. Is that what we want? #housingforall
There are no "laws of economics". The economy is a social construct that we can choose to reconstruct. The current "laws of economics", left intact long enough, will slowly reduce home ownership rates until 1% of people own all of the houses. Is that what we want? #housingforall
@RecoEco Bullsh*t 1. Production precedes consumption 2. Consumption is the goal of production 3. Value is subjective 4. Production has costs 5. Wages are determined by productivity 6. Money is not wealth 7. Labour doesn't create value 8. Profit is a bonus 9. Expenditure is income & costs
@RecoEco There are laws in economics when markets are considered in the aggregate. Governments cannot reconstruct aggregate market economies despite believing they can. They have little influence over unemployment eg as they are only direct employers of the public service.
@RecoEco The "laws of economics", in this context, is a reference to price signalling. Price cannot be mandated (central planning) due to the diversity of the participants.
@RecoEco The only law of economists is that none of them can agree with each other. Economics is not a science, it's a dogma. Science - hypothesis -> test -> adjust hypothesis. If the forecast doesn't match the data, then it's rubbish.
@RecoEco This is true. Amply demonstrated by the economics of "shareholder value". What a load of rubbish it is, yet we slavishly follow it. Prime example, Qantas.
@RecoEco yes, I thought that "laws of economics" was a weird, bombastic claim...